ABSTRACT
IT has been explained in outline how foreign bills feed the foreign currency balances of the banks, and how the exchange trader operates on those balances at rates which are fixed by the factors ruling in the foreign exchange market. This chapter explains detailed procedure for dealing with foreign bills. A documentary bill which is attached to the shipping documents covering the goods in respect of which the bill is drawn. The documents in question are: Invoice; Bill of lading; Consular invoice; Insurance policy or insurance certificate; and Letter of hypothecation, particular or general. A case of a bill being negotiated before acceptance occurs where an accepting house has agreed to accept bills drawn upon itself up to a certain amount.
