Who has the sole authority to amend a letter of credit (L/C)?

The correct choice is the issuing bank, as it holds the exclusive authority to amend a letter of credit. The letter of credit is a financial document issued by the issuing bank on behalf of the importer, which guarantees payment to the exporter as long as the exporter complies with the terms and conditions specified within the L/C.

When changes or amendments are needed, such as adjusting shipment dates or altering the amount, these modifications must be made by the issuing bank. This is because the issuing bank is responsible for the terms of the credit and has a contractual relationship with both the importer and exporter.

Other entities, like the exporting bank, play significant roles, such as advising or negotiating, but they do not have the authority to unilaterally change the terms of the L/C. Similarly, the importing bank facilitates transactions but lacks the right to amend the letter of credit itself. Regulatory agencies also do not have the authority to make amendments to letters of credit; they are focused on compliance and regulation rather than being a party to the financial transaction. Therefore, the issuing bank's unique role and responsibility in the letter of credit process make it the only party authorized to effect amendments.