International Trade Finance: From Medieval Times to Today

Ever since the Middle Ages, international trade finance has been a key part of global business. It all started with local merchants and bankers creating their own unique financial assets. Over time, this system became more centralized, with leading trading centers like Antwerp, Amsterdam, and London setting standards for trade credit instruments. By the 19th century, London had become the global hub for international trade finance, and the sterling bill of exchange was the go-to tool. The First World War and the interwar period brought significant changes, with the market structure evolving and even disintegrating during the Bretton Woods era. After 1970, global trade finance was rebuilt, leading to the decentralized market we see today. This journey shows how trade finance has adapted and grown over centuries, shaping the way businesses operate around the world.

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