Abstract
Every time anyone sells or buys any product or service across any national frontier on terms other than immediate cash payment, there is a differential in the value of the two currencies and that differential does not go away. It can either be a plus quantity or it can be a minus quantity. For example, a UK exporter selling into say Holland invoicing his buyer in guilders and expecting to receive 50,000 guilders in three months time, could ring up any bank and sell them to the bank at a premium for conversion into sterling at a future date.
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© 1990 Derrick Edwards
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Edwards, A.D.P. (1990). Premiums and Discounts. In: The Exporter’s & Importer’s Handbook on Foreign Currencies. Palgrave Macmillan, London. https://doi.org/10.1007/978-1-349-11852-6_4
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DOI: https://doi.org/10.1007/978-1-349-11852-6_4
Publisher Name: Palgrave Macmillan, London
Print ISBN: 978-1-349-11854-0
Online ISBN: 978-1-349-11852-6
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