Documentary Letter of Credit: Current Trend and Practice in International Trade Finance

One of the most important aspect of export and import activities is the way of their financial security. There are various financial instruments which are used for this purpose. Documentary letter of credit is one of the oldest payment instrument which has adapted in changing banking and business environment for many years. Nowadays, we can find its various modifications in practice - from the simplest forms to the most complex. The aim of the article is to introduce this payment and security instrument and the volume of letters of credit use in different regions of the world.