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What is negotiating bank?

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Question added by Abdullah Mahhaden, CFA, CPA , Assurance Manager , Grant Thornton
Date Posted: 2013/06/16
Amjad Ali
by Amjad Ali , Regional Manager , NATIONAL BANK OF PAKISTAN

negotiating bank is Purchasing bank. In export, when the exporter complete all terms of the LC and export the required goods, then he may present the documents to his bank to get finance against the export documents. This whole process is called negitiation.  

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