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Trade experts charged on review of new global order of international trade

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Trade experts across the nation have been charged to examine inherent opportunities and ways of mitigating the risks associated to a new global order of international trade.

Speaking at the 2018 edition of Banking Techniques and Practice of the International Chamber of Commerce (ICC) in Nigeria held in Lagos on Sunday, Mr. Dimitiri Dike, Chief Risk Officer for Heritage Bank, harped on the need for review of operation system due to changes in trade and commerce nationally and internationally.

Dike charged the trade experts present at the meeting to review the new global order of international trade which now allows an open account method of transaction in global trade.

An open account transaction in international trade is a sale where the goods are shipped and delivered before payment is due which is typically in 30, 60 or 90 days.

This method, according to him, is advantageous to the importer in terms of cash flow and cost, but could be a risky option for an exporter as the importer may default payment.

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Chief (Dr.) Raymond Ihyembe, Chairman, ICC Nigeria Banking Commission, warned that there’s need to expedite action to address possible effects of the current policy, stressing that Nigeria’s economy is highly dependent on Oil.

He pointed out that a drop in the global oil prices usually poses a great shock in the country’s aggregate economy.

Ihyembe attributed the challenges facing trade and commerce in the country, which according to him is supposed to be a safety net for the nation, to the policy change.

Dr. (Mrs.) Omolara Akanji, Vice President, ICC Nigeria Banking Commission, urged Nigerian Banks to attend the global ICC events, adding that the platform serves as an opportunity where policies that affect the banking system at the international scene can be formulated.

She lamented that modalities for the new policy were discussed at the ICC Banking Commission meeting held in United States in April which saw no Nigerian bank in attendance.
She added that their presence could have provided them with enough information on the review and adjustments their current structures require.

Meanwhile, the bankers present said they were aware of the new policy, citing the gap between the apex bank and the Nigerian Customs as a their common fear.

According to them, the banks relate with the documents presented by the importer and exporter while the Customs relate with the goods involved, saying “with this, banks are incapacitated to some extent.”

The meeting had in attendance representatives of the ICC Nigeria as well as the experts on the trade desks of different banks operating in Nigeria and the apex bank in the country, the Central Bank of Nigeria.

 

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