Role of Trade Finance for Inclusive Growth
Today, with major Global economies pushing back Global trade, their protectionist attitude is allowing major players in Asia to set themselves up as the new champions of Globalization, and capture the next wave of growth.
The financial sector has seen many innovations through the years. In the 1970’s, a global financial-messaging network, the Society for Worldwide Interbank Financial Telecommunication (SWIFT), started out using the telex, and was considered revolutionary. It created the first global financial messaging service that used a common language for international financial communication. In the 1980’s, dematerialization of stocks and bonds was introduced, allowing paperless transactions of securities. In the 1990’s, central counter party clearinghouses helped reduce risks such as counterparty, settlement, and default risk for traders, and in the first decade of the twenty-first century, it was the application of trading systems and algorithmic trading, bringing efficiencies such as speed.