2024 in trade, treasury, and payments was characterised by volatility. Geopolitical tremors destabilised supply chains, sending shockwaves across global trade networks. Investor uncertainty compounded this, resulting in currency and risk rating fluctuations across the board.

Around two billion people voted last year, and in Indonesia, Pakistan, the UK, and the US, among other countries, the results were unfavourable for the respective incumbent parties; similarly, ruling parties which were once thought invincible saw diminished support, with India, Japan, and South Africa as some examples. 

And new parties brought new policies, as some of the world’s largest economies transformed their approach to trade, treasury, and payments. 

Environmental policy revealed a strained dynamic between rich and poorer nations. The ‘finance COP’, COP29 in Azerbaijan, ostensibly demonstrated international climate commitment and better inclusion of SMEs, but geopolitical dynamics were strained by funding disagreements between rich and poor nations, with concerns about future climate action given the aforementioned anticipated political changes. 

At the UN climate talks, delegations from small island nations and least developed countries walked out of consultations, protesting that they weren’t being adequately heard in negotiations over climate finance. The developing nations are seeking $1.3 trillion in climate aid, while the current draft offers $300 billion annually by 2035. German Foreign Minister Annalena Baerbock criticised wealthy fossil fuel states for “ripping off” vulnerable nations. 

In this divide between richer and poorer nations, trade often finds itself unfairly vilified. Its role in development and poverty reduction is undeniable, yet it carries the weight of scepticism: consider, for instance, issues like trade-based money laundering (TBML), a form of crime which has recently increased sharply in prevalence. But where others see a shadow, we see light. In 2024, the Asian Development Bank’s (ADB) extraordinary TBML pilot showed what can be achieved when technology, transparency, and collaboration come together to reshape perceptions and practices.

This is what motivated us at TFG to produce a magazine focused on emerging markets as our first edition of the year. If ‘volatility’ is the prevailing characteristic of trade finance, it should be acknowledged not only that developing economies are affected adversely by macroeconomic disruption but also that, with the right support, these economies have devised revolutionary strategies to insulate themselves.

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Our first collection of articles comes from the Southeast Asia/Asia-Pacific region. Coverage of Asia tends to be dominated by a handful of economies; China appears to have a magnetic field regarding media coverage. But this issue takes you from Malaysia to the Pacific Islands, demonstrating how developing economies in this region have understood how vital it is to empower their SMEs.

SMEs employ much higher proportions of the workforce in these economies than in more affluent ones – think of local farmers, merchants, craftsmen. These businesses are unlikely to have been exposed to trade finance solutions and mechanisms. But all year, multilateral development organisations like the ADB’s Trade and Supply Chain Finance Programme (TSCFP) have been working to improve the financial literacy of small business owners, through training programmes for women entrepreneurs and capacity-building efforts across emerging markets. Trade cannot thrive without a skilled and informed workforce, and these efforts underscore the importance of human capital in sustaining economic resilience, democratising access to trade and improving resilience against the volatility which has become granted.

Bound by the Pacific Ocean, this edition then takes you to Latin America. Home of Macchu Picchu, Christ the Redeemer, the Amazon Rainforest, and various under-discussed transformations in the remit of trade, treasury, and payments. Whether it’s the implementation of a Beneficial Ownership Registry (BOR) in Belize, in compliance with international requirements on financial transparency, or the fully automated Chancay port in Peru, the LatAm region has taken and run with ideas that have yet to leave the proposal stage in developed countries.

A similar story is true for the Central and Eastern European/Central Asian countries in this edition. We’ve seen the impact that domestic unrest in response to political instability can have on a country’s position on the national stage. Georgia was the example in this edition, but should serve as a stark warning that any country is susceptible to a discontent population. 

On the flip side, we’ve seen a surprisingly strong fintech sector in Kazakhstan, a modern approach to supply chain finance in Uzbekistan, and innovation in data use across the region. All the regions covered in this edition are drowned out by much louder neighbouring countries, but the CEE, with Russia’s continued invasion of Ukraine showing no sign of abating, tends to be the general impression the world has of the region. With this edition, we aim to counter such misconceptions. 

There is a thing or three from developing economies in these regions:

1. Bolster your SMEs, the backbone of any economy. 
2. Embrace and get ahead of digitalisation. Digitalisation has emerged as the great equaliser; technology has become the modern spell that empowers economies to rise beyond their limitations, transforming trade into an engine for equitable growth. 
3. Financial transparency is essential to reduce crime and fraud.

Derisking is the path to a more inclusive and resilient trade system. This means fostering greater transparency, strengthening compliance frameworks, and promoting partnerships between the public and private sectors. The success of ADB’s anti-trade-based money laundering (TBML) pilot exemplifies how targeted interventions can drive meaningful change, addressing both systemic risks and operational challenges. 

Without question, volatility will be a characteristic of 2025. But knowing what we now know, the question is, will we let volatility define the year? 

Across 30 countries, in the words of 25 authors from all corners of the industry, happy reading!