Notional cash pooling avoids the physical transfer of foreign exchange, reducing FX risk. The US tech manufacturer's Yvione Zhou explains how it works in Asia.
Belgian multinational Solvay reveals how it made pooling work — while another treasurer tells how his company fell foul of a policy change. Both agree keeping regulators onside is key.
The regulator clarifies its relaxed rules on forwards settlement in FX and sets out several specific examples of financing needs for which treasurers can use such products to hedge.
Some of the world’s top companies – also including Roche, GE and others – join Swift’s global payment initiative pilot. But whether other “Swift corporates” will be able to go GPI-active remains to be seen.
CFO tells CT how he used a cross-currency swap to cut the effective interest rate on long-term bonds from 4.7% to 2.2%. He also discusses reducing the number of bank relationships
New renminbi rules will reduce the cost and risk of hedging, to the benefit of treasurers. China’s regulator is making the changes to slow the currency’s appreciation.
With an estimated $14 trillion in debt lurking off non-bank balance sheets, is it time to put FX-related debt back onto balance sheets? Corporates are likely to disagree.
From today Chinese financial institutions no longer have to set aside 20 per cent of the value of dollar purchases. For treasurers, that means lower costs and an opportunity to hedge.