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.
As Beijing finally acts to restrict controversial, opaque, risky wealth management products, CT looks at what the impact will be for corporate treasurers.
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.
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.
The need of Chinese corporate to find billions in foreign exchange to pay overseas shareholders is likely to depress the renminbi. But will it last for long?
The new renminbi basket has a lower weighting for the US dollar, but the new fix and spot rates against the dollar could mean greater volatility, analysts warn.