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Why Trade Finance Matters— Especially Now

The COVID-19 pandemic has affected both international trade and trade finance. Trade finance is a critical element for cross-border trade, and in many cases, the movement of goods across borders, particularly in emerging markets, cannot occur without it. The pandemic has affected most sectors of the global economy through both supply and demand shocks, and the financial sector has not been spared, whether through potential loan quality challenges or increased demand for finance.

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