Trade finance traffic volumes dipped slightly in the first quarter of 2012, compared to the same period last year, according to the latest Swift data.
Volumes fell by -1.61%, led by the flows of commercial and standby letters of credit (LCs) and guarantees, which represent 75% of the trade traffic. The remaining 25% of flows is represented by documentary collections
The Q1 2012 results are in line with seasonal trends, according to Swift, as there is normally a decrease in the first quarter of the year compared to the previous quarter. However, this year’s overall decrease of 0.83% is an improvement on last year’s -3.2% figure.
Additionally, compared to the same period in the previous year, the decrease in flows for commercial and standby letters of credit and guarantees (-0.52%) is less significant than the results for documentary collections flows (-4.86%).
In terms of import letters of credit, the eurozone has seen the biggest decrease (-15.17%), and represents a total of 9% of total global documentary credits. The Middle East and Africa have seen the highest growth.
65% of documentary credits are sent by Asia Pacific, which totaled an increase of 0.39% the first quarter of this year.
The Middle East once again showed the highest increase (9.65%) for export LCs. North America experienced the highest decrease (at -6.55%). Together with the non-eurozone countries, this region grew the most, while North America and Europe’s eurozone countries showed the largest decrease.
Last Updated April 23, 2012
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