Template-Type: ReDIF-Paper 1.0
Author-Name: Frederic Boissay
Author-X-Name-First: Frederic
Author-X-Name-Last: Boissay
Author-Name: Nikhil Patel
Author-X-Name-First: Nikhil
Author-X-Name-Last: Patel
Author-Name: Hyun Song Shin
Author-X-Name-First: Hyun Song
Author-X-Name-Last: Shin
Title: Trade credit, trade finance, and the Covid-19 Crisis
Abstract: As the Covid-19 pandemic hits economic activity, the vulnerabilities of longer and more geographically extended trade credit chains are coming to the fore, especially those related to international trade. While risk mitigation is available from financial intermediaries, the bulk of the exposures associated with supply chains is borne by the participating firms themselves, through inter-firm credit. Given the prevalence of the US dollar in trade financing, measures such as central bank swap lines that ease global dollar credit conditions may cushion the impact of the pandemic on global value chains.
Length: 9 pages
Creation-Date: 2020-06-19
File-URL: https://www.bis.org/publ/bisbull24.pdf
File-Format: Application/pdf
File-Function: Full PDF document
File-URL: https://www.bis.org/publ/bisbull24.htm
File-Format: text/html
Number: 24
Handle: RePEc:bis:bisblt:24