Letter of credit in essence is a kind of certificate that the bank swears to pay a sum of money conditionally, and is an important payment method and financing implement in the modern international trade. But as one kind of means of payment and the financing implement, Letter of credit itself does not remove various elements that cause risk of trading in the international trade business. At the same time, because letter of credit system shows solicitude only for the conformity between certificates and documents, the risk leading to the usage letter of credit is enlarged. The existence of the risk in using Letter of credit will do great harms to the regular international trade order, and at the same time bring damage to foreign trade of our country and other countries in the world. Therefore this thesis focuses on discussing the cause and the types of the risk of using Letter of credit, and the characteristics of operation of Letter of credit in practice. This thesis aims at finding out an effect way that the exporters can take to keep watch letter of credit risk in actual trade affair. For exporters, they ought to abide by principles strictly when using Letter of credit as payment method, and regulate the operation of Letter of credit, and get familiar with the varieties of the risk in using Letter of credit so that the exporters can adopt effective measures to keep the risk within limits.
【key words】Letter of credit; The defraud of Letter of credit; The
dishonor of Letter of credit; Risk prediction