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Mysteries of trade finance unravelled

Alexander R. Malaket

Alexander R. Malaket

A book entitled Financing Trade and International Supply Chains by Cash&Trade contributor Alexander R. Malaket is said to take the mystery and complexity out of trade finance.

The book suggests that every trade or supply chain finance solution – no matter how elaborate – addresses some combination of four elements: facilitation of secure and timely payment, effective mitigation of risk, provision of financing and liquidity, and facilitation of transactional and financial information flow.

It also includes observations on the effective use of traditional mechanisms such as documentary letters of credit, plus an overview of emerging supply chain finance solutions critical to the financing of strategic suppliers and other elements of complex supply chain ecosystems.

On top of this, the important role of export credit agencies and international financial institutions is explored, and innovations such as the Bank Payment Obligation are addressed in detail.

One reader, Stephen S. Poloz, governor of the Bank of Canada and past president and CEO of Export Development Canada, said, “Malaket offers an insightful compendium of facts, figures, practices and case studies that show the reader how the world’s trade finance architecture actually works.

“His portrayal is thematic, and grounded in theory, but he somehow manages to bring that theory to life.
He also captures the evolutionary nature of the system – the fact that we are watching a movie, not examining

a snapshot, comes through loud and clear. This book will be required reading for beginners and veterans alike.”

For further details about Financing Trade and International Supply Chains, visit

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