Interest Rate Ceiling For Short Term Permissible Trade Finance In Foreign Exchange

Interest Rate Ceiling For Short Term Permissible Trade Finance In Foreign Exchange

Feb 1, 2024

FE Circular No 4
The all-in-cost ceiling for short-term permissible trade finance in foreign exchange is now set at a 4% markup over the benchmark rate (e.g., SOFR, Euribor). This change aims to facilitate foreign trade finance considering global market trends and interest rates.

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