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Trade finance is nearing a much-needed shakeup
Article

Trade finance is nearing a much-needed shakeup


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Editorial Rating

7

Qualities

  • Applicable
  • Overview

Recommendation

Financing trade is as old as trade itself. But while globalization and supply chains have transformed world commerce, trade finance remains mired in the past. The low-profit, operationally inefficient system, built on trust and wed to outdated practices, is primed for renewal, but the US–China trade war could torpedo its reforms. This expert overview from The Economist, useful for trade specialists and financial professionals, identifies the challenges the sector faces in a time of technological change and rising geopolitical tensions. 

Take-Aways

  • An archaic system of trade credit still holds sway in 21st-century global commerce. 
  • Modern financial tools and digital technologies have begun to reshape the trade finance sector. 
  • But trade finance modernization faces some headwinds.

About the Author

The Economist is an independent weekly magazine covering business, foreign affairs, science and technology.