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Trade Finance

What is Trade Finance? Why is it Important for the World Economy?

Trade finance refers to the financing of services or goods in a transaction or a trade. This is done between a supplier to the end-user. It accounts for around 3 percent of the global trade. Its annual worth comes to around $3 Trillion. However, trade finance is an umbrella term. It denotes a wide range of financial practices followed by an exporter or importer.

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