The Court of Appeal in England has decided in MUR Shipping BV v. RTI Ltd [2022] EWCA Civ 1406 (27 October 2022) that sometimes a party must accept payment in Euros, even though the contract expressly stipulated payment to be made in US Dollars. Although the case is not about independent undertakings, DCW readers might ask if the decision could have implications for letters of credit and demand guarantees.

Recent news reports have suggested that the European Union Parliament will likely retain treatment of certain trade finance instruments at a credit conversion factor (CCF) of 20% instead of increasing it to 50%, but trade finance specialists tracking the ongoing proceedings have said that the EU banking community needs to remain extremely cautious.

The MLETR (Model Law on Electronic Transferable Records) is a revolutionary solution that aims to transform the trade finance industry by providing an open framework for digitising trade documentation. 

To put it lightly, the past few years have been a rollercoaster ride for trade finance. Recent challenges have pushed the industry to the boundaries, which has created significant angst for many. However, this struggle also has a silver lining.

The geographically dispersed nature of international trade creates inherent difficulties when it comes to trusting a counterparty that may be located on the opposite end of the world.

At the ITFA and BCR: Trade & Investment Forum, Trade Finance Global’s (TFG) Deepesh Patel spoke with Abis Soetan, director at Fitch Ratings, to learn how the industry is evolving to incorporate trade as an asset class.

At the International Chamber of Commerce (ICC) UAE’s Trade Facilitation Summit, Trade Finance Global (TFG) spoke with Steven Beck, head of the trade and supply chain finance program at the Asian Development Bank (ADB).

Supply Chain Finance can, and should, be a force for good in ensuring much-needed liquidity reaches all suppliers, regardless of their size and meets the objectives of buyers.

Dubai’s undeniable growth in trade, logistics and the financing of international commerce has made it one of the most desirable trade destinations in the world. This is why I invested more time with members of the ITFA Middle East committee in 2022. 

To learn more about how the trade credit industry is building further resilience, Trade Finance Global’s (TFG) Deepesh Patel spoke with Marc Meyer, SVP subject matter expert, Tinubu at ExCred International’s London conference.