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May 2012
Given the current volatile economic environment, treasurers should take stock of their FX activities. “Hidden” FX transactions can exist in many locations within an organisation, some of which may not fall under the view or control of the treasurer. These hidden activities prevent a treasury from achieving the fullest potential benefits in terms of pricing, compliance, reporting and very importantly – risk management. Taking steps now to uncover locations of FX activities can create a single holistic view for optimal management.
April 2012
Efficiency remains a key goal in the area of payments – but as treasurers continue to focus on counterparty risk, the ability to adapt the company’s payments strategy to changing conditions has become a greater priority. In today’s volatile environment companies need a payments infrastructure which is flexible enough to adapt quickly and seamlessly to changing conditions. Companies with a bank-neutral payments strategy have not only helped ensure their company’s payments are efficient and automated, but should also be able to move quickly and seamlessly between bank providers if the need arises – whether due to a deterioration in a bank’s risk profile, a change in the company’s investment policy or increased market volatility.
March 2012
Across the world, we have seen a reduction in US dollar liquidity. This means that some banks - notably those in Asia and CEEMEA - are paying a premium for dollars, and this is distorting normal market pricing. Whilst offering short-term price advantages for corporates, this practice may be indicative of balance sheet stress from those institutions. The trend is particularly evident in US dollar-based economies that trade commodities such as grains, meats and oil.
February 2012
Whilst SEPA remains a relatively low priority, a Treasurer must now consider the requirements for a timely implementation, including their own IT and project management resources along with those of their banking partners and application service providers. We will likely see availability compression as we move towards the SEPA end-date in February 2014.
January 2012
When we get asked about how to navigate the current Euro crisis, our advice today is really the same as it was 12 months ago, or even three years ago: cash visibility and cash agility are a treasurer’s mantra at the best of times, and during any period of uncertainty they become even more significant.