With global trade already back at pre-pandemic levels, it is tempting to say that the global economy has recovered from the COVID-19 pandemic, and that the worst of its upheavals are now behind us.
However, there are also signs that the rebound from the low baseline of the pandemic is losing momentum, as major economies battle the shared headwinds of persistently high inflation, supply chain disruption, labour shortages, and new COVID-19 restrictions.
To ponder what effect these dynamics...
In the commodities super cycle that has emerged out of the COVID-19 pandemic, few resources have seen as much volatility as liquified natural gas (LNG).
From record lows to record highs in less than 18 months, LNG’s ups and downs are perhaps rivalled only by crude oil, whose 300% plunge to -$40 a barrel in April 2020 is one for the history books, and one for future economics students to ponder.
But unlike oil’s flash crash, LNG’s roller coaster has been a much more sustained affair,...
Like many products within trade finance, trade credit insurance has endured serious volatility during the last 12-18 months, thanks to the COVID-19 pandemic.
But while some products have struggled to bounce back - as evidenced by the growing trade finance gap - trade credit insurance has ultimately emerged from the pandemic stronger than before.
And perhaps one of the best witnesses to that recovery is Richard Wulff, executive director of the International Credit Insurance & Surety...
As the trade finance industry shifts towards more digitalised ways of doing business, new niches are opening up within the market.
One such niche can be found in digitalised trade credit insurance and surety markets, of which one of the largest players is Tinubu Square.
Tinubu Square considers itself the leading B2B software-as-a-service (SaaS) provider for trade-related speciality insurance, namely credit insurance with short-term, medium-term, and political risk, bonds and...
On the eve of COP26 - the biggest climate summit of the year - the world is more focused than ever on reducing carbon emissions, and on the role that individual companies can play in tackling climate change.
Starting this Sunday, COP26 will be the first UN climate conference since the publication of its landmark Intergovernmental Panel on Climate Change (IPCC) report in August this year.
Full transcript here:...
We have just finished the marathon, that is SIBOS Virtual, a festival of trade, treasury and payments. So what better way to celebrate, than to be joined by the CEO of the Banks Association for Financing Trade (or BAFT), Tod Burwell.
Full transcript here: https://www.tradefinanceglobal.com/posts/podcast-s1-ep72-sibos-special-bafts-tod-burwell-on-last-century-of-trade-transaction-banking/
Today we’re talking about messaging. I’m sure we all have messaged before, humans might use whatsapp or messenger. Computers might use application programming interfaces, or APIs. Dogs bark at each other, dolphins message through using soundwaves. But what about banks? How do banks message one another?
Often banks need to talk to each other, confirming beneficiaries, recipients, payment amounts, and details of goods and services of their clients and transactions. SWIFT is the financial...
The current banking landscape is going through a makeover. PSD2 and open banking has it’s advantages, but there are also many opportunities to continue to level the playing field, share risks and revisit the rules.
The Pandemic has driven the acceleration of open banking, from automatic IBAN and Identifier checking, to increased partnerships via APIs.
Today, discussing, the importance of open banking ecosystems and the need for global digital transformation, I’m joined by Industry expert...
World trade is central to economic growth and as we emerge from the pandemic, trade is paramount in enabling the global economy to recover.
We’ve discussed trade digitisation and its many facets for some time now, but the pandemic has now rendered this critical, potentially a tipping point for scalable progress in digitisation.
But it’s not easy. Digitising a complex ecosystem involving myriad actors, rules and regulations, sprawled across both physical and financial supply chains in...
Global supply chains have been and continue to be deeply impacted by the changes that have taken place in the last 12 months. From the Suez canal debacle which showed just how interconnected global supply chains truly are, to the current shortage of HGV drivers in the UK which poses a serious threat to supply lines to schools and hospitals, it is fair to say that the industry is, currently, facing significant challenges.
Is the industry at a breaking point? And what can we learn from these...
Open account business - buy now, pay later - drives economic activity worldwide. And during times of volatility, uncertainty and of course, the pandemic, the need for solutions when it comes to receivables finance has never been more pronounced. With more market participants, the rise of non-bank lenders, a drive towards digitalising the open account ecosystem, there’s a lot going on.
So today, I’m joined by the two co-founders of WOA, Erik Timmermans and John Brehcist.
Today we’re talking about some of the changes in trade in goods volumes, over the past 12 months. A lot has changed. We’ve had a commodity supercycle, with prices surging despite low volumes and amidst the pandemic, trade tensions continue all around the world.
World trade of goods has declined some 12% in the last year, representing a loss of $22 trillion USD of trade. Is it all doom and gloom for trade, or will we see a resurgence? Data also lies at the heart of this problem, with siloed...
The ICC Banking Commission is one of the leading global rule-making bodies for the banking industry, producing universally accepted rules and guidelines which are vital in facilitating trade-led growth and development. From the Uniform Customs and Practice rules for documentary credits to rules on collections, demand guarantees and electronic rules, ICC’s rules underpin trillions of dollars worth of trade going through banks each year.
TFG’s editor, Deepesh Patel spoke with Lynn Ng, ICC’s...
If sustainability and blockchain aren’t the biggest buzzwords in trade finance right now, it’s MLETR - the model law on electronic transferable records.
In this episode, we discussed the realities of implementing the United Nations Model Law on Electronic Transferable Records into local markets, an incredibly important advancement in accepting electronic signatures, with Sarah Green, Law Commissioner, English Law Commission.
Full Transcript Here:...
Reporting Export Incidents, whether on a voluntary or involuntary basis, as well as investigating non-compliance in relation to trade finance operations, is of huge importance to multinationals, banks and policy makers. With that in mind, Spencer Chilvers, Head of Export Control Policy, Rolls-Royce to discuss export controls, the current sanctions environment, and the future, on Trade Finance Talks!
Full Transcript Here:...
As part of Trade Finance Week by ICC Austria, we continued Trade Finance Week, with an African view on global trade.
For trade and supply chains in Africa, access to trade finance, the past 15 months have been incredibly tough for lives, livelihoods and economies, particularly in emerging developing markets. But trade must go on. If anything, the COVID-19 pandemic has accelerated many efforts to rethink the way we do trade. Is paper really necessary and is there a way that we can rethink...
By the end of 2021, it’s anticipated that these rates will be discontinued, transitioning to the Sterling Overnight Index Average, or SONIA for short, and, for US Dollar benchmarks, the Secured Overnight Financing Rate, SOFR). But what does this mean for trade finance, trade finance documents such as Master Participation Agreements, products, and what are the current recommendations?
Full transcript here: https://www.tradefinanceglobal.com/posts/podcast-s1-e61-libor-transition-trade-finance/
Trade finance has a significant role to play in sustainable development and ESG, which extends to addressing global challenges around climate change, human rights and biodiversity.
The banking industry is certainly making progress towards their sustainability mandates, which is no longer a ‘nice to have’, rather, a business imperative. But if we are to jointly work towards the Paris Agreement and the UN Sustainable Development Goals, raising truly understanding the benefits of sustainable...
Digitalization often takes over conversations when it comes to making trade more efficient. It’s well documented that trade is an incredibly paper-heavy, inefficient, unsustainable business right now, but the insurmountable task of ‘digitizing trade’ is rather complex.
Full transcript here:
As businesses look towards ESG factors in their trade finance decisions, we’re here today discussing whether financial instruments in trade can address these concerns.
We take a dive into the world of Letters of Credit (LCs) - non-structured, unfunded trade finance products - some of the essential tools in cross-border trade transactions. An LC is a payment undertaking that a financial institution issues on behalf of a buyer. There are many different types, and in this podcast, TFG gets an overview on Commercial Letters of Credit and Standby Letters of Credit (SBLCs).
Full podcast and transcript here:...
In this podcast, as part of our UK trade series, we focus on 3 themes: what trade relationships in a post-Brexit world actually means for business, the role of trade when it comes to post-pandemic economic recovery, and the importance of international cooperation and multilateralism when it comes to boosting global trade.
On the 1st January 2021, the UK-EU Trade and Cooperation Agreement (TCA) came into effect, but there are many loose ends, and the transition is not yet complete. We discuss...
Japan is the third-largest economy in the world, and one of the most open economies with 4% of global GDP. Once perceived a difficult market to enter, it has, over the past 30 years, grown to be a global powerhouse, from automotives and agriculture, to digital trade and innovation.
Today’s podcast focuses on the Free Trade Agreement, FTA with Japan, more specifically referred to as the Comprehensive Economic Partnership Agreement, Or CEPA. The UK and Japan are major investors in each other’s...
TFG heard from ICC Banking Commission experts who are taking a step beyond the hype of sustainable trade finance, and looking at the role of multilateral development banks (MDBs) and development finance institutions (DFIs) on what sustainable trade finance means and what the industry must do.
There’s no doubt that Covid-19 has also changed appetite here. Companies are under pressure to see what’s happening right across their supply chains, and tracing any items in them – from field to factory...