Payment Currency

Order Payment Currency refers to the specific currency agreed upon in an international trade contract for settling the payment. Its core function is to clarify in which currency the buyer pays and the seller receives payment, thereby avoiding exchange rate risks and payment obstacles caused by currency ambiguity. Usage scenarios include: quotations, contract terms, letters of credit, invoices, and remittance instructions. Precautions: 1) It must be consistent with other contract terms (such as price terms and exchange rate conversion methods); 2) Attention should be paid to the foreign exchange controls and exchange rate fluctuations of the currency's issuing country, and exchange rate locking or adjustment mechanisms should be agreed upon when necessary; 3) If the buyer's country's currency is not freely convertible, hard currencies such as USD or EUR are usually chosen. Difference from 'Currency of Account': the currency of account is used to calculate the commodity price, while the payment currency is used for actual payment; the two can differ, but the conversion rules must be clearly stated in the contract. It is often interchangeable with 'Settlement Currency', but settlement currency emphasizes more the final clearing stage.