LIBOR

Trade Finance Global (TFG) are proud to once again partner with International Trade and Forfaiting Association (ITFA) at their 48th annual conference in Porto. In preparation for the conference, TFG caught up with ITFA’s Chairman, Sean Edwards, to discuss some of the key themes.

Your Monday morning coffee briefing from TFG: World’s first: ICC and WTO launch standards toolkit for paperless trade

Among last week’s top stories, global trade hits record high of $28.5tn in 2021, but will flatline in 2022, says new UNCTAD report

In this article, the Bank of England’s Alastair Hughes talks about LIBOR cessation and risk-free rate alternatives

Almost two weeks have passed since the retirement of the world’s most important number: the London Interbank Offered Rate (LIBOR).

It has, once again, been a tumultuous year for global trade and finance. Here we reflect on our most popular topics, hottest headlines, and key themes of 2021.

Your Monday morning coffee briefing from TFG. Stagflation: Over 80% of US and UK businesses have been hit by increased costs due to inflation. The Bank of England’s (BoE) chief economist backs the case for raising interest rates, and the BoE warns that a CBDC could reduce commercial bank despotis by 20%. The U-shaped recovery – ICISA’s Richard Wulff discusses trade credit insurance and its bounce back from the pandemic. Dr. Joanna Burch-Brown explores the EU taxonomy and the ethics of green finance. And European gas shortages are expected to push up fertiliser costs and food prices.

BAFT is the leading financial services association for international transaction banking. In his new role, Stevenson will lead BAFT’s trade-focused policy, practices, and education initiatives, and support its trade-related councils and committees.

Your Monday morning coffee briefing from TFG. COP26 wrap-up: UK vows to become the world’s first ‘net zero-aligned financial centre’. TFG launches a new Sustainable Trade Finance Hub. A new ICC report proposes the first global framework for sustainable trade and trade finance definitions. Standard Chartered launches a new Sustainable Account solution in the UK and UAE. And UK Export Finance secures 20% budget hike, expanding support for British exporters.

The cessation of the London Interbank Offered Rate, or LIBOR, will be one of the most important events affecting trade finance this year.

Your morning coffee briefing from TFG. Boris Johnson warns there is ‘huge way to go’ at COP26. Rishi Sunak announces new UK budget. New podcast episode with Pole Star and CarbonChain on partnership. SMEs need $50tn investment to meet global net zero goals, says new HSBC, BCG report. And TFG hears from ITFA’s Paul Coles on Structured LCs, MRPAs and the LIBOR transition.

The world’s most important number is changing, and traders need to be aware of its implications.

The UK Financial Conduct Authority (FCA) plans to transition from the London Interbank Offered Rates (LIBOR) to Risk-Free Rates (RFRs) by the end of 2021, to restore trust and integrity in the market. This shift comes after several banks manipulated their interest rates for profit, disturbing trust in the global economy.

Your Monday morning coffee briefing from TFG: The UK agrees to a historic trade deal with New Zealand – among the first of such deals in the post-Brexit era. A new ICC report estimates that full digitalisation could add $9 trillion to G7 trade by 2026. The UK Financial Conduct Authority (FCA) offers more details on its synthetic LIBOR plans. Macquarie strengthens its position as a global shipping lender, with a total market value of over $3 billion. And we hear from ITFA’s Andre Casterman and Johanna Wissing on fintech and ESG for trade finance respectively.

A ‘synthetic LIBOR’ safe house will be available following LIBOR cessation at the end of 2021