Over the past year, Africa has made notable strides in digitizing its payments landscape, culminating in South Africa’s recent entry into the global low-cost real-time payments network.

“From the launch of PayShap and the rapid payments platform in South Africa’s modernization drive to the progress made by the Southern African Development Community’s Transactions Cleared on an Immediate Basis (TCIB) Payment Scheme, Africa continues its push for financial inclusion,” said Roshan Moonsamy, Interim CEO at BankservAfrica.

PayShap: Pioneering South Africa’s digital payment landscape

PayShap, a revolutionary digital payment platform based in South Africa, has played a pivotal role in reshaping the country’s financial landscape. With a steadfast commitment to modernization and accessibility, PayShap has rapidly gained ground, nearing an impressive milestone of one million transactions.

This innovative platform has simplified financial transactions, offering a user-friendly experience that empowers both individuals and businesses to manage their finances seamlessly. Its real-time capabilities ensure swift and secure payments, marking a significant contribution to South Africa’s modernization journey and the drive for financial inclusivity.

TCIB: Seamless cross-border transactions

The Southern African Development Community’s (SADC) Transactions Cleared on an Immediate Basis (TCIB) Payment Scheme represents a remarkable leap towards enhancing financial cooperation within the SADC region. This initiative is focused on clearing and settling transactions immediately, streamlining cross-border payments and curtailing associated costs.

TCIB’s impact transcends national borders, as it fosters economic integration among SADC member states. By eliminating transaction delays and uncertainties, TCIB promotes trade and economic activity within the region. It serves as a testament to the power of collaboration and innovation in bolstering financial inclusivity and regional growth.

Spotlight on Africa’s payment journey at Sibos

BankservAfrica, in collaboration with Rand Merchant Bank, is set to host the African Pavilion at Sibos, scheduled between September 18th and 21st in Toronto, Canada.

Launched at Sibos 2019, this platform shines a spotlight on Africa’s voyage towards a more inclusive payment landscape.

Visitors to the pavilion will have the opportunity to delve into the innovations driving interoperability, the collaborative connections being forged, and the technologies propelling integration.

“Intra-Africa trade and payments offer significant opportunities among different trading blocs on the continent. Secure and connected payment systems will drive increased trade and economic activity, benefiting the entire population.

Sustaining this progress requires concerted efforts, and we are proud to collaborate with other institutions in innovative ways,” said Suresh Chaytoo, Head of International Banking Networks at RMB.

Sibos delegates are also invited to participate in an African-focused discussion on day 2 of the event, Tuesday, September 19th, 2023, at 14:30 (South Building, Level 700, Room 709).

This annual session provides an opportunity for Sibos delegates to learn about Africa’s responses to real-time and cross-border payment demands, including the integration and convergence of diverse payment rails to address future use cases and ongoing commitments to enhance financial inclusion.

The post Africa’s payment revolution takes centre stage at Sibos 2023 appeared first on Trade Finance Global.

Cargill and BAR Technologies’ latest innovation, BAR Tech WindWings by Yara Marine, has set sail. This technology aims to cut cargo ship emissions by up to 30%.

Amidst the global shift towards greener trade, the maritime industry has responded with WindWings.

The wing sails, up to 37.5 meters in height, have been retrofitted on Mitsubishi’s Pyxis Ocean, chartered by Cargill. Installed at China’s COSCO shipyard, the Pyxis Ocean is on its maiden voyage.

Jan Dieleman, President of Cargill’s Ocean Transportation business, remarked, “The maritime industry is on a journey to decarbonize. At Cargill, we prioritize sustainable solutions. Partnering with Mitsubishi Corporation, we’ve adopted WindWings to push towards this objective.”

This project receives support from the European Union’s CHEK Horizon 2020 initiative. The focus is on retrofitting solutions, considering the age of many global bulker fleets. The WindWings performance will be closely monitored, with insights shaping broader industry application.

BAR Technologies and Yara Marine Technologies plan to produce more sails in the upcoming years, while also investigating advanced ship designs.

John Cooper, CEO of BAR Technologies, noted, “Innovative approaches are crucial for reducing international shipping CO2 emissions. The WindWings technology presents a major step in that direction.”

In the broader context of trade finance, the emphasis on sustainable practices continues to grow, with companies like Cargill, BAR Technologies, and Mitsubishi Corporation leading the way.

The post Cargill and BAR Technologies set sail with new wind propulsion technologies appeared first on Trade Finance Global.

Trade Finance Global (TFG) is pleased to announce the upcoming Trade, Treasury & Payments Awards 2023, presented in cooperation with BAFT. These prestigious awards recognise individuals and organisations that have made outstanding contributions to the trade, treasury, and payments sectors.

The Trade, Treasury & Payments Awards 2023 will take place during the BAFT Global Councils Forum in Toronto on 17 September. It will bring together industry experts, thought leaders, and top professionals to honour the excellence in trade, treasury, and payments. Nominations are now open and will be closed on 24 July 2023. 

Categories for the Trade, Treasury & Payments Awards 2023 include:

Sector-Based:

• Best Trade Finance Bank
• Best Treasury Management Bank
• Best Payment Solutions Provider
• Best Supply Chain Finance Provider
• Best Receivables Finance Provider
• Best Trade Law Firm
• Best Freight Forwarding & Logistics Company
• Best Port Operator
• Best Trade Credit Insurer
• Best Transaction Banking Provider
• Best Trade Credit Insurance Broker
• Best Development Bank in Trade
• Best Multilateral Institution in Trade
• Best Correspondent Bank
• Best Trade Distribution Bank

Innovation & Deals:

• Best Tradetech Company
• Trade Finance Deal of the Year
• Treasury Management Innovation of the Year
• Payment Solutions Deal of the Year
• Supply Chain Finance Deal of the Year
• Legal Innovation in Trade

Sustainability:

• Sustainable Trade Initiative of the Year
• Sustainable Trade Finance Deal of the Year

Individual & Lifetime Achievement:

• Lifetime Achievement in Trade
• Lifetime Achievement in Treasury Management
• Lifetime Achievement in Payment Solutions

Diversity and Inclusion:

• Diversity and Inclusion in Trade

Geographical:

• Excellence in Trade (North America)
• Excellence in Trade (Latin America)
• Excellence in Trade (Europe)
• Excellence in Trade (Asia-Pacific)
• Excellence in Trade (Middle East & North Africa region)
• Excellence in Trade (Africa)
• Excellence in Treasury & Payments Banking (North America)
• Excellence in Treasury & Payments (Latin America)
• Excellence in Treasury & Payments (Europe)
• Excellence in Treasury & Payments (Asia-Pacific)
• Excellence in Treasury & Payments (Middle East & Africa)

Nominations for the Trade, Treasury & Payments Awards 2023 are now open, providing an opportunity for individuals and companies to showcase their achievements and contributions. You can apply to nominate yourself and your company starting today. It’s time to start applying and be a part of this distinguished recognition. See below for the important dates.

Steering committee announced and award nominations open (29 June 2023).

Self nominations close (31 July 2023).

Shortlisted candidates are informed (both those who self nominated and were independently nominated by TFG) (3 August 2023).

The steering committee will vote for one winner per category (7-16 August 2023).

TFG to announce winners (under embargo) to collect winning interview responses and prepare campaign (28 August 2023).

Winners to be officially announced and awarded in Toronto (17 September 2023).

Steering Committee for Awards Announced

We are delighted to announce the esteemed members of the Steering Committee for the Trade, Treasury & Payments Awards 2023, who bring a wealth of experience and knowledge to the awards program:

• Mark Abrams, Trade Finance Global
• Marilyn Blattner-Hoyle, Swiss Re Corporate Solutions
• John Brehcist, WOA
• Michael P. Byrne, Documentary Credit World
• Luca Castellani, UNCITRAL
• Emmanuelle Ganne, WTO
• Tarun Khosla, Citi
• Alan Koenigsberg, Visa
• Damian Kwok, ANZ Bank
• Merisa Lee-Gimpel, Lloyds Banking Group
• Roberto Leva, Asian Development Bank
• John MacNamara, Independent
• Pamela Mar, ICC
• Peter Mulroy, FCI
• John Omoti, Bank of China
• Nicole Pitter Patterson, OWIT UK/Caribbean Women In Trade
• Lorna Pillow, ITFA
• Deepa Sinha, BAFT
• Scott Stevenson, BAFT
• Barry Tooker, TransactionBanker.com
• Makiko Toyoda, IFC

The Trade, Treasury & Payments Awards 2023 ceremony promises to be a momentous occasion, celebrating the outstanding achievements and contributions in the trade, treasury, and payments sectors. For more information and to submit your nominations, nominate now!

The post Trade Finance Global Announces Trade, Treasury & Payments Awards 2023 – Open for Nominations, Steering Committee Announced appeared first on Trade Finance Global.

The financial community is keenly interested in Suzuki’s comments concerning the yen because Japan has previously intervened in the forex market when exchange rates fluctuate too rapidly. A case in point is the Bank of Japan’s intervention in September 2022, which was their first such move since 1998. This was aimed at decelerating the yen’s drop in value, an action that successfully lifted the yen by 2% against the dollar.

The Bank of Japan (BOJ), as Japan’s central bank, is primarily tasked with formulating and executing monetary policies, managing foreign exchange reserves, and supervising financial institutions. As a central bank, its mandate is to maintain price stability, tweaking borrowing rates as necessary to control inflation. It also ensures the seamless flow of money between commercial banks within its jurisdiction.

The BOJ’s intervention is crucial for balancing the supply and demand for the yen, and, by extension, the functioning of domestic commerce. While a decline in exchange rate can make a country’s exports more globally competitive, it can also make imported goods more expensive, which could potentially pass the burden onto consumers and lead to inflation. The BOJ’s intervention last year temporarily achieved its aim as market players reacted by buying yen and selling dollars. The yen rebounded from nearly 150 to 130 per dollar within a five-month period.

The yen’s weakness has largely been attributed to the Federal Reserve’s swift hiking of interest rates, which has widened the gap between U.S. and Japanese short-term borrowing rates. The divergence in these interest rates moves in sync with the currency’s movement, as revealed by the changes in the U.S. two-year yield versus the two-year Japanese yield.

The interest rate differential is a key consideration in foreign exchange trading as it underpins the forex forward rate and contributes to forward points, which adjust the spot rate to account for the cost of carrying the currency till the forward date, and drives forex trading. A favorable interest rate differential implies earning interest on the owned currency. For instance, with the U.S. Fed Fund rate at 5% and the Japanese overnight rate at -0.10%, purchasing dollars and selling Japanese yen would yield a 5.1% annual return, assuming the spot rate remains unchanged.

The spot rate is the current exchange rate at which two currencies can be exchanged. It is the rate at which a currency can be bought or sold for immediate delivery. A spot currency rate delivers currency to a counterpart within two business days. 

Fundamental analysis, which involves assessing the intrinsic value of a currency pair by examining related economic, financial, and other qualitative and quantitative factors, is used to understand currency movements. In the U.S., despite some data pointing towards a slowdown, most indicators show a strong economy. The U.S. Labor Department’s recent release of robust jobs data for May – 339,000, considerably above the expected 190,000 – boosted U.S. treasury yields, thereby tipping the interest rate differential in favor of the dollar.

Technical analysis also plays a key role in understanding currency movement. It involves studying past price actions and identifying patterns that may suggest future activities. A variety of tools are used for this purpose, including charts and moving averages, and indicators such as the MACD (Moving Average Convergence Divergence).

Currently, the USD/JPY is gaining momentum as U.S. yields rise relative to Japanese yields. The Japanese finance minister has signaled that the BOJ will refrain from intervening and let the markets determine the USD/JPY forex rates. However, the effects of a weak currency are a double-edged sword for Japan – while it could stimulate exports, it could also increase import costs, leading to higher inflation.

The U.S. Federal Reserve has increased interest rates by 5%, but the Fed Chair’s recent comments hinting at a possible pause has temporarily reduced the upward pressure on the USD/JPY. Despite this, market expectations still indicate further tightening by the Fed, with one more hike expected in July. Strong U.S. jobs data continues to drive yields at high levels, unlikely to decrease swiftly, thereby exerting continued upward pressure on the dollar. Technical indicators, too, suggest an ongoing upward trend for the dollar.

The post Japan’s Finance Minister says markets should set FX Rates after Yen weakens appeared first on Trade Finance Global.

Leverage supply chain strategies

However, as far as generating business goes, it’s up to organisations to find new ways of delivering value to their buyers. So staying ahead of the curve and remaining competitive is no longer optional; it is a necessity. This can be a complex task, given the numerous factors that influence the success of international trade, from economic conditions to geopolitical tensions.

That said, there are several key strategies that exporters can use to remain competitive in a time where the costs of goods and services are but only minor components of a buyer’s purchasing decision. Value can be added in several other areas, which is where the competition can be edged out. This article will outline some of those crucial strategies and methods that exporters can use to attract more of the right type of international buyers and gain that competitive advantage.

How can exporters deliver more value to their buyers?

Understand emerging technologies and using them correctly

One of the most significant ways that exporters can stand out from the competition is to adopt new technologies that are driving change in the world of trade and supply chains.

New technologies such as blockchain, artificial intelligence (AI), and the Internet of Things (IoT) are transforming how commodities are bought, sold, and transported around the world. These technologies offer a range of benefits to exporters, including increased efficiency, improved traceability, reduced lead times, improved security, and lower upfront costs. 

One of the most significant benefits of these new technologies is the way they streamline supply chains, making them more efficient and reducing the risk of bottlenecks and delays. For example, blockchain technology can be used to create a decentralised, secure ledger of transactions that can be accessed by all parties involved in a supply chain. This makes it easier to track the movement of goods and ensures that everyone has access to the same information.

Artificial intelligence, meanwhile, can help to automate many of the manual tasks involved in the export process, such as preparing shipping documents and tracking the status of overseas shipments. This can save time and reduce the risk of errors, helping exporters to operate more efficiently and dedicate more time to focusing on optimising other areas of their businesses.

IoT technology is also transforming the way that goods are transported, allowing real-time tracking of shipments and reducing the risk of theft or loss. This can be particularly important for exporters dealing with high-value items, such as luxury goods or precious metals, as it provides greater visibility and control over their shipments.

Offer lenient payment terms 

One of the biggest talking points in supply chains worldwide is the ever-expanding trade finance gap (estimated at USD 1.7 trillion in early 2023) that persists year after year. More buyers – particularly those in developed economies – are increasingly reliant on flexible invoice payment terms for goods.

Meanwhile, these competing exporters, often in emerging markets, are often forced into acquiescing to this demand. However, so as not to lose business, they often offer extended payment terms to their buyers, subsequently putting themselves at a cash flow disadvantage, and sometimes going 90 days without access to essential working capital. It is only until that particular invoice is paid where that crucial money can be put to good use within the business.

However, there are plenty of trade finance solutions available that exporters can take advantage of, such as non-recourse invoice factoring, which can unlock that working capital, with creditors adopting the responsibility of chasing payment from the buyers. Creditors can advance most or all the invoice amounts, collect the payment from the buyer on the due date and bill the exporter a service fee. 

In turn, exporters can dedicate the upfront capital towards business growth, marketing activities, new production cycles, and much more, while the buyer still gets to reap the benefits of flexible payment. 

Build mutually beneficial, long-term relationships

Another key strategy for staying competitive in global trade is to develop strong relationships with suppliers, customers, and other key stakeholders. This can help to build trust, reduce the risk of disputes, and ensure that all parties are working together towards a common goal.

Building relationships does not happen overnight, but trade fairs, expos, conferences and exhibitions can be good places to start liaising with potential suppliers, customers and partners. The more face-to-face, virtual or hybrid events you can attend will help you establish a strong presence in markets that you are entering, while also allowing your contacts to learn more about your company, ethos, values, conditions, products, and much more.

Another fantastic way to begin attracting the right types of customers, suppliers and partners – and building relationships with them – is to use digital platforms correctly. Specifically, in no particular order, invest in a professional website, high-quality branding, and develop a cohesive, solid marketing strategy for reaching customers online. 

Furthermore, if you are selling highly technical or sophisticated products, ensure your digital platforms use professional imagery of them and their intricate details to ensure they are as ‘valuable’ as possible. Quite often, online consumers are drawn to eye-catching imagery, which can be taken with a reputable DSLR camera. Having a solid portfolio of images to use on your website and marketing materials will go a long way in promoting your products and increasing visibility in target markets. 

Expand your knowledge of other regions and legislation

Another important strategy is to stay up-to-date with changes in regulations, laws, and taxes that may impact your exports. This can be a complex and time-consuming task, given the many geographies and regions that you may need to navigate. Exporters often find that expanding internationally poses challenges that they had not previously considered, such as economic, political, social, and cultural differences in the markets and regions they are entering.

To help with this, exporters can use digital tools, such as trade databases and online legal resources, to access information about regulations and taxes in different countries. They can also work with trade experts and consultants to ensure that they comply with all relevant regulations and laws, and to identify any potential risks and opportunities.

Enhance product development

Finally, exporters can improve their competitiveness by investing in the development of new products and services that meet the needs of their customers. This can help them ‌stay ahead of the curve and respond to changing market trends and consumer preferences.

Investing in research and development can also help exporters ‌develop new technologies and production processes, which can help to reduce costs, improve quality, and increase efficiency.

What’s the right way to outpace competition?

The short and concluding answer is that there is no right way, but equally, there is no wrong way either. Ultimately, your success as an exporter is down to the strategy or strategies that you implement collectively to push your business ahead of your competitors. 

It’s important to remember you have access to plenty of digital supply chain tools, many of which are accessible from the comfort of your own home, which can lend a helping hand in your quest to branch out beyond your home country’s shores.

The post Supply chain strategies and the exporters edge appeared first on Trade Finance Global.

Your Monday morning coffee briefing from TFG:

• The politics of African sovereign debt restructuring – 2023 update
• Bpifrance – French export market overview, an exclusive interview with the French ECA
• Finastra – Compliance, digitalisation, and ESG: navigating emerging trends in trade finance
• An uncertain landscape: Five trade finance trends for 2023
• Trafigura: Banking volatility will not impact commodity trading
• EY and IOE&IT tradetech report highlights digital solutions in international trade
• BIMCO to push for accelerated uptake of electronic bills of lading
• Moody’s affirms positive deposit ratings on nine Saudi Arabia banks

The politics of African sovereign debt restructuring – 2023 update

The specifics of African sovereign debt are incredibly nuanced and require a deep dive into country-specific situations and multilateral relationships. Trade Finance Global’s (TFG) Deepesh Patel sat down with Robert Besseling, CEO of Pangea-Risk at ExCred International in London. Read more →

Bpifrance – French export market overview, an exclusive interview with the French ECA

At ExCred International, Trade Finance Global’s (TFG) Deepesh Patel sat down with Maëlia Dufour, director international relations, business development, rating, environment and climate at Bpifrance and president of the Berne Union, to learn more about the intricacies of the trade credit industry. Read more →

Finastra – Compliance, digitalisation, and ESG: navigating emerging trends in trade finance

To learn more about some of the emerging trends in the trade finance ecosystem, Trade Finance Global (TFG) spoke with Elena Sankova, global solution consultant and head of European pre-sales for working capital and cash management at Finastra. Read more →

An uncertain landscape: Five trade finance trends for 2023

As uncertainty remains in global supply chains and trade finance, the International Trade and Forfaiting Association’s (ITFA) Lynn Galkoski, Director, Trade Product & Portfolio Management with BNY Mellon Treasury Services shares her insights on trends that may arise this year. Read more →

Trafigura: Banking volatility will not impact commodity trading

The recent rout in bank shares will not have a knock-on effect on commodities, global trading firm Trafigura’s chief financial officer Christophe Salmon told the Financial Times Commodities Global Summit. Read more →

EY and IOE&IT tradetech report highlights digital solutions in international trade

Tuesday morning, the Institute of Export & International Trade (IoE&IT) and Ernst & Young (EY) released their report, “TradeTech: A pathway for businesses to seize trade opportunities”. Read more →

BIMCO to push for accelerated uptake of electronic bills of lading

The use of electronic bills of lading (eBLs) increases efficiency, reduces costs and improves the overall transparency and security of trade. Read more →

Moody’s affirms positive deposit ratings on nine Saudi Arabia banks

Moody’s Investors Service announced the long-term deposit ratings of ten banks in Saudi Arabia, as well as the senior unsecured and subordinated debt ratings of their affiliated entities, where applicable, from a stable to a positive outlook. Read more →

The post TFG Weekly Trade Briefing, 27th March 2023 appeared first on Trade Finance Global.

The process of starting a new business is never an easy one. It involves planning and research, taking financial decisions, as well as bearing in mind a series of legal requirements. If you have the intention to begin a commercial activity in Australia, and you are not an Australian citizen or permanent resident, you must familiarize yourself with the Australian visa policy. The country down under offers many types of visas, and even many types of business visas. As an example, the popular e-visitor visa Australia is sometimes considered as a business visa, since it allows certain business activities, like attending professional meetings or signing business agreements. However, it is not appropriate for someone who wants to set up a business and carry out a professional activity in the country. 

If you have the intention to start and run a business in Australia, the first you have to do is apply for a visa to work in Australia. As previously mentioned, the country offers different kinds of work and business visas. Consequently, it might be difficult to figure out what kind of visa you need, and how you can obtain it. 

One thing you should bear in mind is that you cannot apply directly for your business visa: you must first be invited by a state or territory government. This is the process you should follow:

1. Submit an expression of interest. You can do this online, via SkillSelect, the Department of Home Affairs online service.
2. Contact a state or territory government, or the CEO of Austrade and ask them for an invitation to apply for a visa.
3. If you meet the necessary requirements, you may receive an invitation which will allow you to apply for a visa. Bear in mind that you will need to provide a series of documents to support your request.

Different types of business visas

Once you are allowed to apply for your business visa, you should consider what type of visa is better suited for your situation. The list of working and skilled visas for Australia is long, but the following are the most applied for visas by non-Australians who want to set up a business in the country:

1. Business Innovation and Investment visa (Subclass 188)

The Business Innovation and Investment visa (subclass 188) is a provisional visa. It is addressed to entrepreneurs with business skills and allows you to run a new or an already existing business. It is valid for 4 years and 3 months, but holders can apply for the permanent version of this visa (the Business Innovation and Investment visa (subclass 888) as soon as certain requirements are met.

2. Business Talent visas

This is a permanent visa and it is addressed to entrepreneurs who have been nominated by a state or territory government agency,  have been invited to apply for the visa, and most importantly, have the necessary financial resources to start an activity. There are two types of Business Talent visas:

• Significant Business History Stream, for experienced business owners who want to run a new or existing business in Australia. Candidates must have a minimum net value of AUD 1.5 million and a minimum annual business turnover of AUD 3 million.
• Venture Capital Entrepreneur Stream. This type of visa is addressed to entrepreneurs who have obtained venture capital financing from a member of the AIC (Australian Investment Council). An important requirement is that the candidate must have a minimum venture capital funding of AUD 1 million to develop the business idea. 

Once you have obtained your visa

Obtaining your business visa is only the first step. But it is an important one. After that, you will have to go through another series of milestones, like registering your business, obtaining your tax IDs, or applying for licenses and permits. 

Starting a business in a different country is a great project. Before embarking on such an adventure, you might have to visit the country a couple of times. Luckily, for a simple business trip, you don’t need to go through a lot paperwork. You can simply apply online for an e-visitor visa. After filling in your application form, your visa request will be sent to the Australian authorities, and you will receive your Australia visa in just a few hours. 

The post Australia Visa and customs overview – 2023 update appeared first on Trade Finance Global.

Your Monday morning coffee briefing from TFG:

• The outlook for trade and investment in 2023 – how the market is changing for trade assets
• VIDEO | Lord Holmes – the enactment of the Electronic Trade Documents Bill, what next?
• Commodity trade finance in the new normal: The way forward
• Details and implications of the Silicon Valley Bank collapse
• Why brands must first address their last-mile challenge to achieve a sustainable future
• ITFA announces new Fraud Prevention Working Group
• Canadian Minister Ng discusses international trade with UK
• Trafigura refinances and extends $1.5bn European facility

The outlook for trade and investment in 2023 – how the market is changing for trade assets

This past week, Trade Finance Global (TFG) stopped by the inaugural ITFA and BCR: Trade & Investment Forum 2023 to learn more about making trade an investible asset class. Read more →

VIDEO | Lord Holmes – the enactment of the Electronic Trade Documents Bill, what next?

While at the ITFA and BCR: Trade & Investment Forum 2023, Trade Finance Global’s Deepesh Patel was happy to sit down and talk to Lord Holmes of Richmond MBE to discuss what the UK government is doing to support this digital transition. Read more →

Commodity trade finance in the new normal: The way forward

After COVID-19, the Commodity Trade Finance Industry experienced a period of great recovery. Trade finance covers a broad range of financing arrangements for the production, exporting and selling of commodities.  Read more →

Details and implications of the Silicon Valley Bank collapse

In the largest banking collapse since the 2008 financial crisis, US regulators were forced on Friday to take over control of Silicon Valley Bank (SVB) – a prominent lender to tech start-ups, providing financing for almost half of US venture-backed technology and healthcare companies.. Read more →

Why brands must first address their last-mile challenge to achieve a sustainable future

Relying on efficient and eco-friendly transportation methods can reduce costs associated with fuel consumption, maintenance fees, and other expenses related to traditional delivery methods.  Read more →

ITFA announces new Fraud Prevention Working Group

ITFA, the Global Trade Finance Industry body, is delighted to announce the creation of the ITFA Fraud Prevention Working Group. Read more →

Canadian Minister Ng discusses international trade with UK

Minister Ng and Secretary Badenoch discussed the ongoing process for the United Kingdom to accede to the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP).  Read more →

Trafigura refinances and extends $1.5bn European facility

Trafigura Group Pte Ltd, announced the closing of its new 365-day European multi-currency syndicated revolving credit facilities totalling $1.9 billion, as well as the extension and increase of its $3.5 billion 3-year facility.  Read more →

The post TFG Weekly Trade Briefing, 20th March 2023 appeared first on Trade Finance Global.

Against the backdrop of wide-reaching global political and economic uncertainty, the credit and political risk insurance market (CPRI) has access to more capacity than ever before, with notional maximum capacity increasing across the board, demonstrating the resilience and depth of the CPRI market. This is according to the Credit and Political Risk Insurance Capacity Survey and Market Update, released today by WTW (NASDAQ: WTW), a global advisory, broking, and solutions company.

In January 2023, the risk intermediary polled fifty-eight insurers across Lloyd’s and company markets. Of these, 49 expanded on their appetites and capabilities as at 31 January 2023. The survey also benefits from WTW’s own databases alongside commentary based on its interactions with insurers throughout 2022.

The survey found that there has been a substantial increase in total notional CPRI capacity as at 31 January 2023 with:

• Approximately USD 4 billion contract frustration total notional capacity available per transaction, up from USD 3.4 billion this time last year (20% increase)
• 17% increase in transactional trade credit (to USD 3 billion)
• 37% increase for non-trade credit (to USD 2.2 billion)
• Overall political risk capacity up by nearly 15% to almost USD 4 billion
• Increase in capacity across all tenors generally, but there is particular growth in contract frustration where notional capacity for 15-year tenors is USD 2.5 billion versus USD 1.8 billion for the previous year (37% increase)

When asked about exposures, 32 CPRI insurers detailed their top three countries by exposure, with the U.S, U.K. and Nigeria ranking first, second and third respectively.  All 49 respondents listed their top industry exposures, which were – in descending order – financial institution, sovereign, oil and gas.

“The fact that we are seeing a continued and steady increase in capacity within the CPRI market denotes its stability as well as the market’s confidence in this sector” said Emma Coffin, Head of Broking, Global Financial Solutions at WTW. “Each of the three main CPRI perils, contract frustration, transactional credit and political risk, have experienced growth over the past two decades through various market cycles, across the COVID-19 pandemic and the resulting lockdowns.

“Oil and gas has declined from first place to third place in respect of top industry exposures and this survey also highlights a marked rise in renewables and ESG with a positive shift in the number of markets able to support clients with challenging financing structures.  We foresee all these positive trends continuing in 2023.”

The post CPRI market remains resilient with record capacity amidst global economic and political uncertainty appeared first on Trade Finance Global.

Your Monday morning coffee briefing from TFG:

• PODCAST | Dirty financing: the slow progression of ESG
• PODCAST | Trade and receivables finance, in football terms
• PODCAST | From policy to practice: navigating the road to digital trade in 2023
• Bridging the gap in sustainable trade & finance
• Trade Finance & SME – What to expect in 2023 and beyond?
• Allianz Trade gives keynote speech on the trade finance gap
• ITFA launches Multilaterals Advisory Panel to provide guidance on trade finance initiatives
• HSBC sees APAC corporates shifting to local supply chains

PODCAST | Dirty financing: the slow progression of ESG

TFG interviewed ITFA and ADB about the financing of dirty commodities and fossil fuels, and what a sustainable transition means for trade finance.  Read more →

PODCAST | Trade and receivables finance, in football terms

With an estimated 3.5 billion fans around the world, it’s no wonder the finance behind football piques interest, even in the world of trade and receivables finance. Read more →

PODCAST | From policy to practice: navigating the road to digital trade in 2023

Trade Finance Global (TFG) spoke with Pamela Mar, managing director at the ICC Digital Standards Initiative, to explore the key themes driving trade digitisation and their potential impact on trade and trade finance in 2023. Read more →

Bridging the gap in sustainable trade & finance

The International Chamber of Commerce (ICC), a global business organisation, has a central mission to promote international trade and investment as vehicles for inclusive growth and prosperity. ICC helps businesses adapt to the challenges of trading in today’s fast-paced global economy.  Read more →

Trade Finance & SME – What to expect in 2023 and beyond?

Hamsika Gopalan discusses the trade finance and commodity environment for SMEs in 2023. After a few years of volatility, 2023 is expected to be another difficult year. Read more →

Allianz Trade gives keynote speech on the trade finance gap

The world’s SMEs need £24.7 trillion worth of financing to close the trade finance gap, with UK SMEs needing an estimated £580 billion, the chief economist of the trade credit insurance Allianz Trade warned. Read more →

ITFA launches Multilaterals Advisory Panel to provide guidance on trade finance initiatives

ITFA, the Global Trade Finance Industry Body, is delighted to announce the creation of the ITFA Multilaterals Advisory Panel. Read more →

HSBC sees APAC corporates shifting to local supply chains

Over the next 12-24 months corporates in Asia Pacific are looking to move more of their supply chains closer to home. Read more →

The post TFG Weekly Trade Briefing, 6th March 2023 appeared first on Trade Finance Global.