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Saturday, May 18, 2013

Letter Of Credit

Dictionary Says

Definition of 'Letter Of Credit'

A letter from a bank guaranteeing that a buyer's payment to a seller will be received on time and for the correct amount. In the event that the buyer is unable to make payment on the purchase, the bank will be required to cover the full or remaining amount of the purchase.
Investopedia Says

Investopedia explains 'Letter Of Credit'

Letters of credit are often used in international transactions to ensure that payment will be received. Due to the nature of international dealings including factors such as distance, differing laws in each country and difficulty in knowing each party personally, the use of letters of credit has become a very important aspect of international trade. The bank also acts on behalf of the buyer (holder of letter of credit) by ensuring that the supplier will not be paid until the bank receives a confirmation that the goods have been shipped.

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Economic Event Calendar

GMT+5:30 Event Vol. Actual Consensus Previous
Tuesday, Jun 10
11:30 Claimant Count Rate 2 4.5% 4.4% Revised from 4.5%
11:30 Employment Change (3M) 3 89K 112K
11:30 Average Earnings Including Bonus (3Mo/Yr) 2 5.3% 5.5% 5.6% Revised from 5.5%
15:30 NFIB Business Optimism Index 1 98.8 95.9 95.8
18:25 Redbook Index (YoY) 1 4.7% 4.9%
21:00 52-Week Bill Auction 1 3.93%
22:30 3-Year Note Auction 1 3.824%
Wednesday, Jun 11
02:00 API Weekly Crude Oil Stock 1 0.7M -3.3M
04:15 Visitor Arrivals (YoY) 1 -8.4%
15:00 10-y Bond Auction 1 4.673%
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