Trade Finance Talks Issue 24 – January 2025
To coincide with BAFT’s 2025 MENA Bank to Bank Forum held in Dubai, TFG’s latest magazine has launched!
In 2024, the trade, treasury, and payments landscape experienced significant volatility. Geopolitical events disrupted supply chains, leading to ripple effects throughout global trade networks. Investor uncertainty added to the turmoil, causing fluctuations in currency values and risk ratings across the board.
Political shifts were also a notable trend, with around two billion people voting in various countries such as Indonesia, Pakistan, the UK, and the US, resulting in unfavourable outcomes for incumbent parties. New parties with different policies emerged, reshaping the trade, treasury, and payments strategies of some of the world’s largest economies.
Environmental policy was a key focus, revealing tensions between wealthy and poorer nations. The recent COP29 in Azerbaijan highlighted international climate commitments and the importance of including SMEs in climate action. However, disagreements over funding between rich and poor nations strained geopolitical dynamics, raising concerns about future climate initiatives.
At the UN climate talks, developing nations voiced their frustrations over inadequate representation in climate finance negotiations, highlighting the stark divide between richer and poorer countries. The call for $1.3 trillion in climate aid from developing nations clashed with the proposed $300 billion annual funding by 2035, underscoring the challenges of global cooperation on climate issues.
Despite the challenges, trade remains a critical driver of development and poverty reduction. However, issues like trade-based money laundering (TBML) have raised concerns about the integrity of trade practices. In 2024, the Asian Development Bank’s (ADB) successful TBML pilot demonstrated the potential of technology, transparency, and collaboration to combat financial crimes and reshape industry perceptions.
Motivated by these dynamics, TFG’s magazine focuses on emerging markets in its first edition of the year. The publication aims to highlight the innovative strategies that developing economies have implemented to navigate volatile economic conditions and strengthen their resilience.
The magazine features articles from Southeast Asia/Asia-Pacific, showcasing how developing economies in the region are empowering their SMEs and enhancing financial literacy. Multilateral organizations like the ADB have been instrumental in providing training and capacity-building programs to support small businesses and foster economic growth.
Moving to Latin America, the magazine explores the region’s advancements in trade, treasury, and payments, including initiatives like the Beneficial Ownership Registry in Belize and the automated Chancay port in Peru. These examples demonstrate the region’s commitment to embracing new ideas and technologies to drive economic progress.
The edition also covers Central and Eastern European/Central Asian countries, shedding light on their innovative approaches to trade and finance amidst political challenges. Despite geopolitical tensions, countries like Kazakhstan and Uzbekistan have shown remarkable progress in fintech and supply chain finance, highlighting the region’s potential for growth and development.
The magazine emphasizes three key principles for developing economies:
1. Supporting SMEs as the backbone of the economy
2. Embracing digitalization to drive growth and innovation
3. Promoting financial transparency to combat fraud and corruption
By prioritizing derisking strategies and strengthening compliance frameworks, countries can build a more inclusive and resilient trade system. The success of initiatives like ADB’s TBML pilot underscores the importance of targeted interventions in addressing systemic risks and operational challenges.
As we navigate the uncertainties of 2025, the magazine encourages readers to approach volatility with resilience and adaptability. With contributions from industry experts across 30 countries, the publication offers insights and perspectives on the emerging trends and opportunities in global trade, treasury, and payments.
In a world shaped by change and complexity, staying informed and proactive is key to navigating the evolving landscape of international finance. The magazine serves as a valuable resource for industry professionals, policymakers, and stakeholders seeking to understand and respond to the challenges and opportunities of the global marketplace.
With a commitment to promoting dialogue and knowledge-sharing, TFG’s magazine aims to empower readers to embrace change, drive innovation, and build a more sustainable and prosperous future for all.
