Résumé (EN)

We analyze the effect of exogenous US monetary policy shocks on trade credit flows towards emerging markets. We use a proprietary database on firm-to-firm trade credit flows. We find trade credit to be an additional pass-through channel of US monetary policy to emerging markets and a substitute to other types of financing for EM importers. Using the granularity of the data, we distinguish between different mechanisms. Specifically, US monetary tightening exerts three distinct effects. First, it increases EM importers’ demand for trade credit, used as a substitute to other financing tools themselves restrained. Second, it restricts US suppliers’ ability to extend trade credit to their EM customers, thus acting as a liquidity squeeze. Finally, it also affects trade credit flows through an exchange rate channel, impacting differently USD and non-USD flows.