# Banking turmoil will not have knock-on effect on commodities -Trafigura CFO
Author:  Pal Sinha, Barnali 
Author URL: https://financedigest.com/author/pal-sinha-barnali
Published: 2023-03-22
Category: NEWS
Category URL: https://financedigest.com/category/news
Meta Title: Trafigura CFO: Bank Shares Rout Won't Affect
Meta Description: Trafigura's CFO Christophe Salmon reassures that the recent bank share decline will not affect commodities market, highlighting strong ties between banks
URL: https://financedigest.com/banking-turmoil-will-not-have-knock-on-effect-on-commodities-trafigura-cfohtml

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By Julia Payne

LAUSANNE, Switzerland (Reuters) -The recent rout in bank shares will not have a knock-on effect on commodities, global trading firm Trafigura’s chief financial officer Christophe Salmon told the Financial Times Commodities Global Summit on Wednesday.

“On banks’ appetite for trading firms, let’s not forget trading firms give banks a lot of business opportunities from hedging to trade finance, M&A and so on…,” Salmon said.

We are eligible to many products in [banks so they are keen to support](https://www.financedigest.com/britains-digital-banks-need-support-amid-banking-turmoil-trade-body.html "Britain’s digital banks need support amid banking turmoil – trade body") us,” he added.

Brent crude oil prices hit their lowest last week since 2021 on concern that the rout in [bank shares could trigger a global recession and cut fuel](https://www.financedigest.com/stocks-rise-after-bank-sale-fuels-investor-risk-appetite.html "Stocks rise after bank sale fuels investor risk appetite") demand.

Share prices have since seen a slight uptick after a historic deal in which UBS, Switzerland’s largest bank, agreed to buy [Credit Suisse](https://www.financedigest.com/mitsubishi-ufj-to-postpone-at1-bond-issuance-in-credit-suisse-fallout.html "Mitsubishi UFJ to postpone AT1 bond issuance in Credit Suisse fallout").

But Salmon said he did not expect banks’ appetite for financing [commodities trade](https://www.financedigest.com/a-brits-guide-to-understanding-commodity-trading.html "A Brit’s Guide to Understanding Commodity Trading") to wane after the collapse of Credit Suisse, adding that the entry of export credit agencies is a major development in commodities finance markets.

New lenders (are) now [active in our sector](https://www.financedigest.com/dollar-slides-on-contraction-in-private-sector-activity.html "Dollar slides on contraction in private sector activity"), which are the export credit agencies. We managed to raise [close to $5 billion of competitive term funding](https://www.financedigest.com/galois-capital-flagship-fund-to-close-after-ftx-losses.html "Galois Capital flagship fund to close after FTX losses") with the support of these export agencies,” Salmon said.

Trafigura has entered into several energy and metals deals in recent [months involving German](https://www.financedigest.com/inflation-in-key-german-states-eases-for-second-month.html "Inflation in key German states eases for second month") and Italian export credit agencies.

(Reporting by Julia Payne in Lausanne, writing by Rowena Edwards in London; editing by Toby Chopra and Jason Neely)


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