Letter of Credit Forum

Hi experts,

1)

can a Bill Of exchange can be avalised pre-shipment in an open account trade?costwise LC=>aval?Whether western countries prefer LC route compared to aval with asian coutries?Is it beacuse of lack of popularity of AVAL concept in asian countries forcing to trade with LC.

2)

In terms of foreign exchange risks,when in aval mode importer is exposed to only the currency risk,unless in an C mode,where a re-finance on LC by mode of a buyers credit or a suppliers credit ideally importer is exposing himself to floating rate interest ?pls share your views.