EmerioBanque

From competition to collaboration: Supporting international trade through a crisis

The COVID 19 pandemic is not only posing threat to humans' lives but also to the economy. This year has been the worst for global trades and new alliances are needed in order to ameliorate supply chain commotions and rift of trade flow.

In the last few months, COVID-19 has expanded from Asia to America and Europe, resulting in an economic shutdown. In every industry, the exporters, importers, manufacturers, and buyers are facing a lot of restrictions and problems.

The impact of this crisis has been sudden and disastrous. In order to break the chain, nations are calling on total shutdown, resulting in economic contraction. The World Economic Outlook, divulged by International Monetary Funds, foreshadows 3% of the global economic contraction in the year 2020.

The World Trade Organization has issued an alert of international trade falling up to the third. There is minimal transparency of improvement, so supply chain partakers are looking for ways to regulate this new normalcy.

The hard copy-based trading industry is facing trouble because 90% of the world's workforce is working from home and this industry runs off original documents. Paperwork cannot be submitted or done during this pandemic scenario and it is quite difficult for the companies to immediately adopt automation and technology.

Earlier in trading, remote capability was never on the priority but now it is at the top of the chart. Now clients are prioritizing their investment in infrastructure and stability. It's not just the banks that come up with a solution, even fintech is also trying to get into some large transactions and flows.

Tech companies, such as Microsoft and IBM have strives to provide equity. Governments are also taking measures to bolster this venture. From the private and public sector, there are serious substantial resorts for the coalition and inflow of money, skill, and reserves.

As this infection grows, every nation's economy faces severe contraction and lack of liquidity. To keep the businesses afloat new ways are needed for growth.

Related news: COVID-19 Crisis Poses Threat to Financial Stability

Supply Chain Finance is a decent solution during stable times but proves to be a boon during tough times. It benefits the constant cycle of commodities that should be maintained. Earlier, it was just a choice to fill out term extensions, but now it is helping the suppliers get finances urgently.

The governor of Incoming Bank of England, Andrew Bailey, indicated that SCF is the solution for the companies who are struggling for liquidity to sustain their supply chain. Even the US Exim also extended its SCF guarantee program for a time being.

The coalition of the public and financial sectors will work to eliminate pressure and difficulties for international trade. UK Export Finance, US Exim and other ECAs have extended their support and stated that they will be the channel from the government to the banks and then the banks can channel the capital to suppliers.





Other news

Exchange Rates

Currency Buy Sell
EUR USD 1.06 1.10
EUR GBP 0.86 0.89
EUR CHF 1.02 1.06
EUR AUD 1.72 1.70
EUR JPY 116.08 116.56
EUR MYR 4.50 4.77
EUR SGD 1.53 1.57
EUR HKD 8.27 8.53
EUR CAD 1.54 53.84
EUR DKK 9.75 1.55

Most Recent Blogs View All Blogs

08 Feb

Blockchain's Impact on Trade Finance: Shaping Global Commerce

Trade financing facilitates global commerce but involves antiquated systems reliant on manual paperw...

06 Feb

India's Trade Dynamics Amidst the Red Sea Crisis

As of now, there has been no significant impact on India's exports and imports owing to the crisis i...

31 Jan

Choosing the Right Trade Finance Instrument for Your Business

Understanding Trade FinanceTrade finance facilitates transactions and lowers risks for buyers and se...

Disclaimer

Emerio Banque is an innovative global financial institution incorporated in England and Wales with Legal Entity Identifier 875500DGPPWAFABBK130. Emerio Banque does not offer its products and services to businesses and/or persons registered in the United Kingdom.

No information on this website should be construed as a solicitation, offer, recommendation, and representation of suitability or endorsement of any security, investment or strategy.

Important Notice

Emerio Banque would like to advise its customers to report any suspicions which they may have regarding the identity of any intermediary who promotes products or services offered by us or any intermediary bearing similar names. You should verify with Emerio Banque by calling our Customer Service Number on +44 203 059 7831 or emailing help@emeriobanque.com

Please also be aware of bogus SMS messages and voice message calls or fraudsters who impersonate the staff of Emerio Banque.

We have recently become aware of a number of entities with different names misrepresenting themselves as associates, partners or agents of Emerio Banque.

Please be informed that Emerio Banque is not associated with nor do we have any business connections or dealings with such institutions.

Emerio Banque takes all information regarding suspicious fraudulent activity very seriously. Please immediately inform us at compliance@emeriobanque.com if you suspect or are approached by persons misrepresenting or impersonating Emerio Banque and/or its officials. We will make investigations and will take legal action where necessary.