EmerioBanque

Extensive 80-90% Reliance Of The Global Trade, Trade On Finance, Credit, And Guarantees

Finance, credit and guarantees are the drivers of the global trade market, with research depicting 80-90% reliance on these factors. This means exporters and importers from developed countries benefit from the low interest offered by international banking institutions. On the other hand, businesses from less developed countries have to bear the burden of high-interest rates, which is very well reflected in their trade costs.

This is worth discussing because factoring and lending in the trade finance market is generally short term with a non-uniform coverage of trade finance.

Further, the rapid advancement and technology adoption have helped drive structural alterations in the global trading mechanism. Conventional closed systems are now enhancing their capabilities and offerings, all thanks to the growing application of open APIs.   

In addition, 2019 was an altogether insatiable environment both in terms of geopolitics and macro economy. This is primarily accredited to Brexit and, of course, the trade war between China and the US, which has taken an extensive toll on the market.       

Estimates suggest exporters lost a staggering revenue amounting to 420 billion USD. The pandemic followed this in 2020, which has had a deep impact on the way businesses are carried out around the globe.


Some Notable Trends In The Market


The adoption of technology and growing significance of DLT in the Trade Finance market

Like any other market, even the trade finance market requires technology to survive and sustain the business. As per the Asian Development Bank calculations, the gap in global trade finance amounts to $1.5 trillion, which also equals 10% of merchandise trade volume. However, this amount is predicted to reach upto $2.4 trillion by 2025.  

Broader adoption of DLT can reduce this gap and bring it down to $1 trillion. Therefore, financial institutions must hasten their technology adoption and drive better efficiency to address gaps.  

Restricted access to the market

Most businesses from developing countries find it almost impossible to access the trade finance market. On a global scale, over 50% of trade finance requests are rejected by SMEs, and MNCs reject 7%.





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

24 Jan

How Investment in Trade Finance Can Help SMEs Thrive?

A healthy trading system depends on the availability of finance. Up to 80% of current Global Trade F...

06 Jan

Why Is Supply Chains Transparency Essential To Speed Recovery

Greater transparency is expected to make worldwide trade and supply bind more dependable and guarant...

05 Jan

Why Is Reconceiving The Global Trade Finance Ecosystem Essential And How Is It Possible?

​Trade finance service helps to get cash and finance quickly, making the supply chain smoother. Th...

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.