Political instability in many regions of the world coupled with currency and commodity volatility is sparking fresh interest in trade finance, Paul Cohen-Dumani of Switzerland's MIT SA tells gtnews.
Sanctions are increasingly used as a foreign policy tool aimed at bringing recalcitrant nations to heel or to instigate regime change. As companies move into emerging markets, sanctions and embargoes are becoming a vital issue for treasury.
Corporations are holding unprecedented amounts of unspent cash, including about US$500bn in Asia. The trend is likely to continue for multiple reasons.
Online hotel rooms service Hotelbeds implemented Citi’s InstantFX foreign exchange solution to mitigate currency exposure risk. Allied to an overlying hedging programme, it has cut monthly profit and loss (P&L) volatility by 60%.