Barter / Swap / Switch
Occasionally a barter transaction is appropriate whereby the straight exchange of goods having off-setting values occurs without any flow of cash taking place. We can advise on the contract between the two trading parties and there is no currency exchange involved so this may be useful where there is a lack of hard currency. An example of straight barter is where Middle East oil is exchanged for military equipment and essential imports.
When a customer, which can be either a company or a country has surplus credits we can arrange for these to be transferred to a third party, usually a switch trading house and use the credits to purchase from the country in deficit. This often involves complex barter deals but the end result is hard currency which is transferred to the party with surplus. We can assist with negotiations with the discount house.
We can advise on these bi-lateral clearing agreements when required.
We can advise on the possibilities in relation to swapping transactions to reduce sea-borne transport costs.