,International Trade Finance and Forex
Operations
This book bridges the existing gap between the theory and practices related to international
finance. It discusses banking theories and operational procedures relating to the methods of
payment with special reference to Letters of credit (LCs), like revolving LCs, back-to-back LCs,
transferable LCs, and standby LCs, with specific applications of documentary discrepancies.
Moreover, this book discusses merchanting trade, buyers’ credit and supplier’s credit, and bank
guarantees with many practical caselets, linked to the applications of the International Chamber
of Commerce (ICC) and other regulatory rules. It also examines the various roles of banks in
financing international trade which are extensively discussed through several cases.
This volume
• Explains in-depth the intricacies and discrepancies relating to the documentation involved in
international trade;
• Presents in detail the various steps of executing an export or import deal, right from signing
of the contract, managing pre-shipment credit, and booking a forward contract to hedge the
exchange rate risk till the closing of the deal;
• Gives a comprehensive account of all trade finance products with processes and procedures,
rules, and regulations, and risks and mitigates;
• Discusses the application of ICC rules through detailed case-lets, which helps an exporter
take necessary actions when the payment is denied by a party overseas, or how an importer
can simply deny the payment if there is documentary noncompliance;
• Scrutinises different types of forex transactions, the regulatory framework within which they
take place, and the associated risks and solutions;
• Attempts to resolve the existing disparity in the understanding and interpretation of regulatory
guidelines and the practices adopted by banks and corporate houses in implementing them.
Accessibly written, this book will be useful to students, researchers, and teachers from the fields
of management, business studies, international trade and treasury operations, finance, interna-
tional banking, trade and commerce, and economics. This will also be an invaluable companion
to the professionals working in export–import businesses, foreign exchange businesses, treasury
front-office and back-office operations, bureaucrats, and public policymakers.
Gargi Sanati, PhD, is currently working as an Associate Professor at NIBM, Pune, India.
Specializing in trade finance and Forex dealings, Dr. Sanati’s key areas of interest are Forex
Trading, Macro-Finance, Forex Dealing Room Operations, International Trade, and ICC
Guidelines. She plays a lead role in coordinating and teaching a number of executive programs
,in the area of Forex dealing and bourse game, financing international trade and Letter of Credit
Business, Data Analytics, and Econometric Methods. Also, Dr. Sanati has taken lead roles as a
consultant to the banking industry and the Government of India. Dr. Sanati has her publications
in many reputed national and international journals. Dr Sanati received her PhD degree from the
Centre for Development Studies, Jawaharlal Nehru University (JNU).
, International Trade Finance
and Forex Operations
Theory and Application
Gargi Sanati
Operations
This book bridges the existing gap between the theory and practices related to international
finance. It discusses banking theories and operational procedures relating to the methods of
payment with special reference to Letters of credit (LCs), like revolving LCs, back-to-back LCs,
transferable LCs, and standby LCs, with specific applications of documentary discrepancies.
Moreover, this book discusses merchanting trade, buyers’ credit and supplier’s credit, and bank
guarantees with many practical caselets, linked to the applications of the International Chamber
of Commerce (ICC) and other regulatory rules. It also examines the various roles of banks in
financing international trade which are extensively discussed through several cases.
This volume
• Explains in-depth the intricacies and discrepancies relating to the documentation involved in
international trade;
• Presents in detail the various steps of executing an export or import deal, right from signing
of the contract, managing pre-shipment credit, and booking a forward contract to hedge the
exchange rate risk till the closing of the deal;
• Gives a comprehensive account of all trade finance products with processes and procedures,
rules, and regulations, and risks and mitigates;
• Discusses the application of ICC rules through detailed case-lets, which helps an exporter
take necessary actions when the payment is denied by a party overseas, or how an importer
can simply deny the payment if there is documentary noncompliance;
• Scrutinises different types of forex transactions, the regulatory framework within which they
take place, and the associated risks and solutions;
• Attempts to resolve the existing disparity in the understanding and interpretation of regulatory
guidelines and the practices adopted by banks and corporate houses in implementing them.
Accessibly written, this book will be useful to students, researchers, and teachers from the fields
of management, business studies, international trade and treasury operations, finance, interna-
tional banking, trade and commerce, and economics. This will also be an invaluable companion
to the professionals working in export–import businesses, foreign exchange businesses, treasury
front-office and back-office operations, bureaucrats, and public policymakers.
Gargi Sanati, PhD, is currently working as an Associate Professor at NIBM, Pune, India.
Specializing in trade finance and Forex dealings, Dr. Sanati’s key areas of interest are Forex
Trading, Macro-Finance, Forex Dealing Room Operations, International Trade, and ICC
Guidelines. She plays a lead role in coordinating and teaching a number of executive programs
,in the area of Forex dealing and bourse game, financing international trade and Letter of Credit
Business, Data Analytics, and Econometric Methods. Also, Dr. Sanati has taken lead roles as a
consultant to the banking industry and the Government of India. Dr. Sanati has her publications
in many reputed national and international journals. Dr Sanati received her PhD degree from the
Centre for Development Studies, Jawaharlal Nehru University (JNU).
, International Trade Finance
and Forex Operations
Theory and Application
Gargi Sanati
