Issue 01 . Jan 2022
This issue of Trade Finance Talks aims to deconstruct the tenets facilitating change in the landscape. It explores the changing landscape of trade finance, focusing on emerging markets and their challenges. It highlights significant challenges in Africa, including limited trade finance access, US dollar liquidity issues, inflation, and supply chain strains. It also addresses similar global problems faced by emerging markets, exacerbated by the retreat of correspondent and respondent banking relationships. The issue also discusses innovations in the credit insurance market, regulatory constraints like Basel III reform, and the potential of securitisation and tokenising trade finance assets. The issue outlines how technology enhances operability and efficiency with AI and data solutions but also introduces risks like anti-money laundering (AML), know-your-customer (KYC) issues, and duplicate financing fraud. Despite these risks, tech advancements have significantly benefited emerging markets by facilitating cross-border payments and reducing the environmental impact of a paper-based industry.
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