UNDERSTANDING LETTER OF CREDIT - LECTURE 1
The customer entered the banking hall weeping uncontrollably and entered the Branch Manager's office. The staff and customers alike were at a loss as to what had really happened. For some five minutes, the client could not open his mouth to say anything, but was in deep thought. finally, he led the cat out of the bag. He had been duped by a Kenyan friend. The US $30,000 he withdrew some two weeks ago - all gone. The Kenyan friend had promised to help him import some goods from South Africa, for the impending Christmas season. It is now two weeks and the Kenyan friend is no where to be found. The customer had been ill advised to ignore the bank making such remittances as their charges on such transactions were too high. on this fateful day, the customer had made this withdrawal of $30,000 against all pleading to transfer by SWIFT to a correspondence bank in South Africa, claiming our charges were too high. He again ignored our advise to send a letter of credit to hi...