Foreign Currency Trade Finance

For the Importer and Exporter

Foreign currency trade financing allows you to finance your sales and purchases of local and foreign currency bills, in foreign currency. Bills drawn under Letter of Credit, Documentary Collection and Open Account can be converted into Foreign Currency Trade Finance. As the financing is advanced in foreign currency, your interest rate will be pegged to the foreign currency's interest rate instead of Base Lending Rate. This allows you to enjoy cost savings if the cost of funding in foreign currency is cheaper than Ringgit Malaysia.

Benefits

• Allows access to cheap funding through foreign currency rates when they are cheaper than Ringgit Malaysia
• Improves your negotiation position as a buyer receiving shorter supplier credit period, or as a seller providing longer credit period
• Improves cash flow for better cash management and business expansion
• Net exporters have the advantage of natural hedging of exchange risk
• You may benefit from foreign exchange if rates move in your favor