Payment Payment Currency

Payment Currency refers to the currency type explicitly agreed upon in an international trade contract for settling order payments. It directly affects the costs, exchange rate risks, and collection security of both buyers and sellers. Usage scenarios include: currency designation under settlement methods such as letters of credit, telegraphic transfer, and documentary collection. Precautions: 1) It must be consistent with the contract currency and invoice currency to avoid bank refusal or delay due to currency mismatch; 2) Pay attention to the foreign exchange controls and exchange rate fluctuations of the currency-issuing country, and it is recommended to add exchange rate protection clauses; 3) If it is a soft currency, the exporter may request a price increase or purchase exchange rate insurance. Difference from other terms: Payment currency is different from currency of account, which is used to calculate prices, while payment currency is used for actual payment, and the two may be the same or different; it is also different from settlement currency, which emphasizes the currency used for interbank clearing. In practice, it should be clearly written as 'Payment Currency: USD', etc., and exchange rate conversion rules should be agreed upon.