Latin American and Caribbean trade has recovered substantially following the Covid-19 pandemic, on the back of higher commodity prices and stronger economic activity in the region.
As a result, demand for trade financing solutions has also bounced back. “We are seeing significant growth in trade finance across the region. A lot of it is tied to the current elevated interest rate environment and the downturn in the bond markets, which has reduced the access to capital markets for companies to raise liquidity,” says Steve Donovan, head of treasury and trade solutions for Latin America at Citi.