Dollar Index, USDTWD and USDSGD Technical Analysis

Dollar Index

The first five wave rise in the dollar to 94.10 about to complete.

USDTWD

The Taiwan Dollar – early days of forming a base and recovering from the lows. An X wave or a new rally? Both odds are open. Upper end of the falling channel is at 31.27 as the resistance to any X wave move up. A 5 wave rise and 3 wave correction long term are done though so odds should favour another impulse wave up.

USDSGD

USDSGD closed positive for the last two months – wave 3 of larger degree appears due to start on the monthly chart. If not at least a near term rally in the pair. Next resistance is at 1.38 and 61.8% retracement is at 1.41.

Adam Smith Associates offers trade & commodity finance related services & solutions to its domestic and international clients. Views expressed in this article are purely of the author – Mr Rohit Srivastava – a leading technical analyst. Visit www.adamsmith.tv for services offered by Adam Smith Associates Pvt Ltd

How Innovative Trade Finance Structures Can Remedy the Bad Loan Portfolios of Banks

 

Your social media profile says a lot about you. Who you’re friends with, where you work or go to school, and there might be a picture or two you don’t want the world to see.

If we as people want to make it as professionals then we need to monitor what goes into our profile and weed out unprofessional material, which could potentially damage that reputation.

The same is true for financial institutions. They need to pride themselves with a friendly profile to represent the values of the institution. We have Facebook profiles and banks have loan portfolios.

A financial institution is only as strong as its profitability, capital strength, and asset quality. However, poorly managed portfolios can have negative effects for the bank’s image and credit worthiness.

This guide will help you understand a new remedy to bad loan portfolios.

What Are Loan Portfolios?

Bank Manager approving loan

Banks rely in great part on their ability to provide loans to people. Lending is a crucial part of the prosperity of financial institutions. Loan portfolios are loans held for repayment and a great asset and key factor for the revenue of banks.

The value of a loan portfolio depends on the principal and interest owed, and the credit worthiness of the loan.

They can also bring great risk to the banks economy if not managed properly. Loan portfolios must go through annual audits to access the risks and identify control breaches.

What Are Trade Finance Structures?

Structured Trade Finance (STF) is a type of debt finance. This type of finance route is used as an alternative to lending.

Developing countries use this type of finance in relation to cross border transactions. The goal is to promote trade by using non-standard security.

It’s commonly known as a commodity loan. What makes STF loans appealing to borrowers is because the strength of the transaction is not followed as closely as a typical loan.

The focus of this loan is the cash flows as a result of trade. Also, the transactions aren’t reflected in the balance sheet, which means it helps with the flexibility of the credit terms with the exporters.

How to Combine Both

Since STF is a type of debt finance, and an alternative to lending, it registers differently on the record books. This is a solution for many bank portfolios because the loan terms aren’t as closely monitored.

The cash flow is what shows on this type of loan, and the interest owed and credit worthiness is more lenient. Due to the trade in the transactions, the jurisdictions are also specific to the country where the trade is taking place.

Banks who want to clean up a portfolio can benefit from this type of loan because the cash flow will weight more than the interest owed on the loan. If you have any more questions on how STF can remedy a poorly managed loan portfolio is always a good idea to consult finance advisory.

If you want to stay on top of the latest news and trends in finance, follow the Adam Smith Associates Blog.

5 Exciting Global Trends in Trade Finance

Businesses thrive under pressure. And while every year brings its own set of challenges, it also brings its new sets of opportunity. Thus, as we look forward to the final quarter of 2017 and the beginning of 2018, it is exciting to consider potential innovations in trade finance.

Here are some trends to look forward to in the next few years. While they will prove to be challenging, they also prove to be exciting opportunities for those looking to invest in trade.

Faster Manufacturing

Just as trade finance played a role in the early development of international trade, it’s also played a role in its innovation. One incredible way in which this has happened was through the creation of a faster rate of manufacturing.

International trade has encouraged a number of companies to develop faster mechanisms of development. This has allowed more products to be put on the market at a faster rate due to technologies such as 3D printing.

While these technologies have provided a number of challenges to manufacturers, in the long run, they will result in increased capacity for businesses. This is good news for investors and customers alike.

The Role of Robotics in Trade Finance

A 3D Printer in action
3D Printing, Robotics in Trade Finance

Like 3D printing, robotics is a relatively new trend in the economy that’s bound to cause a few challenges. For investors, it’s also an unavoidable reality.

The best thing you can do is take advantage of the robotics movement. That could involve deeper investment in manufacturers or taking advantage of the wide variety of robotics ETFs on the market.

Either way, smart investors will treat this as an opportunity for growth.

The Continued Rise of E-Commerce

E-commerce has been growing for over a decade. And that trend is continuing on an international scale today.

For investors, this means there is time to develop a strategy that situates around the continued growth of this consumption method. It’s clear that e-commerce is so much more than just a passing trend: so make sure you give it the financial respect that it deserves.

The Role of Blockchain

Blockchain is going to play an absolutely tremendous role in trade. Blockchain companies offer a number of opportunities to the discerning investor. Whether it’s the ever-constant benefits of operating as a digitized company or the elimination of unpaid settlements, Blockchain’s growth is an exciting trend for trade investors around the world.

Combatting a Trade-Hostile Environment

While the current environment offers a number of opportunities to investors, it is not perfect. Between the EU’s imperiled existence and the rise of trade-hostile politicians around the world, there are policy dangers in the current business environment.

While weaker investors will flee, this is not a smart choice. The best option is to stay on top of the news and look for ways to thrive in the current market. By making these choices, you are far more likely to ensure your success.

Get Ahead Of The Curve

If you want to succeed in a challenging business environment, you will need to innovate. We’re here to help you with that.

We’re committed to helping traders around the world succeed. Whether it’s through commodities or global trade, we can play a role in your success.

For more information on what you can gain by working with us, contact us today!