Bruc Bond, a leading global corporate banking services provider, announced the creation of its new Commodities and Derivatives Department.
The Department focuses on risk-managed provision of banking services, payment accounts and payment and clearance facilities to commodities traders around the world.
“COVID-19 and the slowdown in global trade have dealt a blow to commodities traders engaged in sustaining vital supplies around the world. Bruc Bond’s commodities department, with a variety of custom-tailored banking solutions, allows us to provide much-needed support to international trade efficiency with a quick turnaround,” said Bruc Bond CEO Krishna Subramanyan.
COVID-19 Disruptions to Commodities Banking
No sector of the economy has been spared the shocks of the global COVID-19 pandemic. The pandemic has affected the demand and supply of commodities, according to the April edition of the World Bank’s Commodity Markets Outlook report. Those effects are direct, resulting from shutdowns to mitigate the spread of the virus and disruptions to supply chains, and also indirect, as the global response slows growth and leads to what is anticipated to be the deepest global recession in decades.
The effects have already been dramatic, particularly for commodities related to transportation. Oil prices have plunged since January, and prices reached an historic low in April with some benchmarks trading at negative levels. While gains have been made since the April lows, the road to recovery is still long ahead. Meanwhile, the price of gold is reaching never-seen-before highs as investors seek a safe haven for their funds.