stackyFACTSInternational trade finance relies heavily on warehouse receipts acting as rock-solid collateral.
International trade finance relies heavily on warehouse receipts acting as rock-solid collateral. In 2014, traders in the Chinese port city of Qingdao exploited this blind trust by pledging the exact same stockpiles of copper and aluminum multiple times to different Western banks. This massive double-pledging fraud exposed the dark reality that multi-billion-dollar global trade networks were operating on easily forged pieces of paper.
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