In one month, China’s foreign exchange regulator has fined 48 corporates, banks and individuals. European chemistry giant Solvay, as well as HSBC, are on the list.
A 7% slump in the renminbi's value as the winds of trade war blow has an unwanted consequence: 2016-style capital controls and difficulty in withdrawing money from the country.
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.
The chemical giant is moving payments out of China to Thailand while switching hedging activities back to its Brussels head office. Its treasury team explains how it's going to work.
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.
Treasurers need to understand the Chinese regulator's thinking when handing cross-border transactions. Its priority now is ensuring such transactions are authentic.
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.