In her role as Regional Treasury Manager at global digital advertising firm Aleph Group, Kazakhstan-based Zhanna Irgaliyeva has responsibility for the Commonwealth of Independent States and part of the MENA region.

Covering such a wide range of territories inevitably throws up specific treasury management issues.

Challenges include managing cultural differences – understanding local business customs and practices is vital for effective communication and relationship-building, down to being aware of local holidays and how these can create delays in transfers or payments.

“Each country has specific regulations governing foreign currency transactions and failure to comply with these regulations can result in challenges with FX payments, intercompany settlements and dividend distribution,” adds Irgaliyeva.

Ensuring sufficient liquidity in foreign exchange markets can be difficult (especially in less liquid currencies with insufficient liquidity posing significant challenges when executing transfers outside the country) while volatile currency markets can affect cash flow and investment decisions and underline the importance of implementing robust hedging strategies.

“Establishing and maintaining relationships with both global and local banks is crucial for efficient cash management,” says Irgaliyeva. “Opting for banks with a global presence can streamline the process of opening bank accounts across multiple countries. However, challenges may arise when dealing with local banks, including language barriers and varying account opening requirements.”

Geopolitical factors also have to be taken into account since changes in political climates or economic conditions can impact operations and financial planning.

“Then there are differences in reporting and ERP systems,” says Irgaliyeva. “Variations in reporting standards and ERP capabilities can complicate consolidated reporting and financial management. To navigate these challenges successfully, deep market expertise and adherence to best practices are essential.”

When asked what factors treasurers should consider when deciding whether to work with global or local banks in individual markets, Irgaliyeva recommends assessing the merits of global presence against local requirements.

“Banks with a global footprint can simplify account management across countries, but it is important to investigate if local laws mandate certain payments – such as taxes and social contributions – to be processed only via local financial institutions.”

In terms of banking capabilities, this makes it even more advisable for companies to evaluate whether local banks can provide ERP and TMS connectivity, adequate FX liquidity, efficient FX payment processing, payroll processing and dividends distribution capabilities.

While acknowledging that treasury management systems facilitate the consolidation of bank accounts and automate cash flow reporting, Irgaliyeva suggests there is room for improvement in two key areas:

• Enhanced analytics – incorporating more advanced analytics tools would allow treasurers to gain deeper insights into cash flow patterns and investment opportunities.

• User experience – continuous improvements in user interfaces can further streamline processes and enhance usability.

Accessing information on political, economic and regulatory developments in complex or fast-moving markets is not always a straightforward process. Irgaliyeva recognises this but says treasurers should tap into a number of different sources of timely and accurate information.

“Utilise insights from global banks that have a presence in the target country and check the websites of each country’s central bank for regulations and currency guidelines,” she says. “Engage with local legal and outsourcing firms or consulting companies for expert guidance on regulatory compliance and refer to specialised treasury websites that provide updated reports on complex markets.”