Letter of Credit Payable in Foreign Currency – Cross-Border Payment
Structuring with FX Clarity Multi-Currency LC Design | FX-Backed MT700 | UCP 600 Compliant for Global Trade
⚠️ Want to Pay or Get Paid in a Currency Different from Your Country’s?
An Indian textile exporter requested payment in USD, but the buyer was based in Brazil. NNRV structured an LC payable in foreign currency—issued in BRL but payable in USD. No conversion delays. No regulatory confusion. Everyone got paid in their preferred currency.
🧠 “Our buyer paid in their currency. We received USD. NNRV made the FX part seamless.” – Priya R., Textile Export Manager
What Is a Letter of Credit Payable in Foreign Currency?
It’s a Letter of Credit (MT700) that allows the issuing bank to pay the beneficiary in a currency different from its domestic currency, as agreed between buyer and seller. It enables international trade without limiting either party to local FX regulations.
At NNRV, we structure cross-currency LCs under SWIFT MT700 in full compliance with ICC UCP 600, aligning with FX controls and local bank frameworks.
🧠 “We now structure all LCs in USD—even when the buyer pays in local currency.” – Mark A., Industrial Tools Distributor
Key Benefits of Foreign Currency LC
✅ Avoid Conversion Delays – Beneficiaries receive payment directly in the target currency.
✅ Smooth Global Trade – No more LC rejections due to mismatched currencies.
✅ Currency Risk Planning – Hedge FX exposure from the start.
✅ UCP 600 Compliant – Legal under international banking norms.
✅ Ideal for Exporters, Aggregators & Multinational Buyers
How Does a Foreign Currency LC Work?
Buyer & Seller Agree on Currency – Define payment currency (e.g., USD, EUR).
LC Request Sent to Issuing Bank – Specifies payment currency and FX handling.
Bank Issues MT700 LC – Payable in chosen foreign currency.
Seller Ships Goods – Presents documents in agreed terms.
Bank Pays in Foreign Currency – Funds remitted as stated in the LC.
📂 Documents Required for FX LC Structuring
To issue an LC payable in foreign currency, we collect:
📌 Sales Contract – Currency clause must be specified.
📌 Draft LC Terms – Including payable currency field.
📌 Buyer & Seller Compliance Files – KYC, AML, UBO declarations.
📌 FX Authorization (if needed) – Central bank or bank-specific permission.
📌 SWIFT-Compatible Bank Info – IBAN, USD/EUR/GBP account identifiers.
🏦 Trusted Banks for FX-Payable LCs (MT700)
The following banks support LCs payable in foreign currencies for global trade flows:
| Bank Name | SWIFT Code | FX Currencies Supported | Advantages | Issuance Fees | Issuance Time | Min. Transaction | LC Types |
|---|---|---|---|---|---|---|---|
| HSBC Hong Kong | HSBCHKHHXXX | USD, EUR, GBP, CNY, JPY | Top-tier FX handling, fast conversion | 0.6–1.4% | 2–5 days | $1M | MT700, FX-Payable |
| BNP Paribas HK | BNPAHKHHXXX | USD, EUR, CHF, ZAR | FX liquidity across Africa, EU | 0.6–1.2% | 2–6 days | $1M | MT700, Transferable FX |
| Credit Foncier GmbH | CFEGDE82 | EUR, USD, GBP | Strong EU cross-currency experience | 0.7–1.3% | 2–7 days | $500K | MT700, Irrevocable FX |
| Standard Commerce USA | STDMDMDMXXX | USD, CAD, EUR | Excellent for North American FX deals | 0.8–1.4% | 2–6 days | $500K | MT700, Confirmed FX |
| ABC Bank Mauritius | ABCKMUMU | USD, EUR, INR | Flexible for Africa–Asia FX flows | 0.5–1% | 2–5 days | $250K | MT700, FX-Payable, Usance |
(📩 We provides FX compliance memos and SWIFT coordination for each LC issued.)
🎯 Why Use an LC Payable in Foreign Currency?
| 🔒 Feature | ✅ Benefit |
| Cross-Border FX Clarity | No confusion between buyer and seller |
| Get Paid in USD or EUR | Avoid conversion losses |
| Bank-Backed FX Handling | Secure, regulated transactions |
| Faster Settlements | No local conversion delays |
| Legal & Audit Friendly | Clean, traceable SWIFT workflow |
🛠️ Our 5-Step Process
Buyer and seller agree on FX terms
NNRV drafts FX-ready MT700 LC
Bank reviews and confirms FX structure
LC issued in foreign currency
Payment made directly in target currency
🔍 FX-Payable LC vs Other LC Structures
| Instrument | Currency Flexibility | Best Use Case | FX Risk Coverage |
| LC Payable in FX | High | Cross-border, dual-currency trade | 🔒🔒🔒🔒🔒 |
| Local Currency LC | Low | Domestic trade only | 🔒 |
| Confirmed LC | Moderate | High-risk country exports | 🔒🔒🔒🔒 |
| Transferable LC | Moderate | Multiple-tier sourcing | 🔒🔒🔒 |
Why Choose NNRV for FX LCs?
🔒 SWIFT MT700 FX Structuring Experts
✅ FX Memo Drafting + Compliance Notes
📄 Legal FX Terms Integrated in LC Draft
🌍 Bank Selection by FX Corridor (USD, EUR, GBP, etc.)
📁 Cross-Border Transaction Monitoring
💲 Fee Notes
Fees depend on:
• FX currency selected
• Bank availability & liquidity
• LC value and region
🔹 Ask NNRV for an FX-structured LC quote.
🧠 Real Testimonials
“We invoice in EUR, but our buyers pay in local currencies. NNRV handles the entire LC setup.”
– Fatima D., Agroexporter – Tunisia
“No more headaches on currency conversion. We get USD direct.”
– Jorge V., Mining Supply Group – Peru
📚 What Makes Us Different?
✔️ 100% SWIFT FX Compatibility
✔️ Multi-Currency LC Templates
✔️ Real-Time Structuring With Bank FX Teams
✔️ Clean LC Drafts Approved by Tier-1 Banks
📌 From $250K to $100M+ LCs issued with cross-currency flexibility
❓ Top 5 FAQ – Answered by Experts
Can I choose the payment currency? Yes. You and the buyer agree on it contractually.
Does the issuing bank need FX approval? Sometimes. We provide documentation to accelerate this.
What if exchange rates move? We can help hedge your FX exposure or fix the LC rate.
Is this structure accepted globally? Yes—under SWIFT MT700 and UCP 600.
Can I use confirmation with FX LCs? Yes. Confirmed FX LCs are commonly used for risk protection.
🔗 Related Services
• Confirmed LC
• Transferable LC
• FX Hedging Strategy Advisory
• SWIFT MT700 FX Draft Review
📖 Strategic Blog Posts
• How to Structure an LC Payable in USD or EUR
• Avoiding FX Risk in Cross-Border Trade Deals
• LC Currency Clauses: What to Include & Why
🚀 Structure Your FX LC Today!
Get paid in your currency—every time. Let NNRV build your LC payable in foreign currency.
📩 Book Your FX LC Structuring Call
☎️ Work With Our Experts | 🌍 USD, EUR, GBP, CNY | ✅ SWIFT MT700 Delivery