Pricing in trade finance – which is driven primarily by the cost of liquidity and the cost of risk – has had a rollercoaster rise in the past two years. “There exists a historical anomaly in trade finance whereby Indonesia risk is now priced lower than that of the US or the UK – never mind Ireland or Greece,” explains Tan Kah Chye, global head of corporate cash and trade at Standard Chartered. “Trade pricing for emerging markets is now significantly lower than for what were known as leading economies.”
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