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.
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.
From a small Hong Kong office, a state-owned giant manages billions that bankroll global energy projects. Now, it's looking at taking its cash-pooling solutions global.
Sources confirm access to onshore CNY rates will be available offshore to companies within two weeks, reducing the need for them to open onshore accounts.
As the virtual currency's value explodes, one expert sees a day where it becomes a vital part of the treasury arsenal ... or even replaces the corporate treasurer entirely.
The central bank is now making it easier for renminbi to be remitted, but conditions still apply. Treasurers in China are, however, holding fire until more information is available, CT understands.