Editorial

Energy and change

Lunar new year celebrations around the world recently ushered in the year of the fire horse. Could this unusual year of energy and dynamism accelerate transformation in treasury’s all-too familiar bottlenecks of payments, trade and financial reporting, all of which, coincidentally, are covered in this spring’s packed edition.

In some respects, the cogs of change are gathering momentum. Our exploration of Europe’s economic woes finds corporate frustration at the region’s fragmented capital markets and access to capital. But solutions laid out in the Draghi report, the Savings and Investment Union and payment initiatives like the digital euro have the potential to revitalise economic growth and foster Europe’s own tech champions. Elsewhere, we find treasury teams welcoming stablecoins as an increasingly exciting solution to the cost and challenges of late payments in complex international jurisdictions – regulatory uncertainty and prefunding the liquidity withstanding. And stablecoins offer a potential treasury nirvana in Africa, where behind the impressive numbers racked up by some African digital payment providers, our reporting shows significant challenges persist to offering all businesses a viable alternative to cash payments.

In a powerful antidote to enduringly chaotic US tariff policy, this edition’s Question Answered showcases how a little known trade agreement, The Regional Comprehensive Economic Partnership, is gaining traction in its efforts to reduce tariffs, harmonise trade rules and enhance supply chains across APAC. And our exploration of corporate giving in Asia highlights the pivotal role of corporate treasurers managing the risks of KYC and cross-border payments to boost philanthropy.

Switching focus to the Americas, we explore a looming reporting challenge out of the US that will impact companies seeking to list; Marcelo Penteado Baldo, Treasury Coordinator at Sylvamo, based at the paper giant’s Brazilian operations, shares his love of treasury and details of the company’s new supply chain finance programme. A bright spot in a region where access to trade finance is hitting small and medium sized businesses particularly.

Finally, this edition turns to evolving treasury practice in the Middle East where technology is in the driving seat. Our Corporate View interviewee, Patrick Peters-Bühler shares his career insights and argues the case for Abu Dhabi Global Markets (ADGM) to become a major liquidity centre for corporates in the region, potentially prompting liquidity to move away from London in another focus on dynamic transformation in the year of the fire horse.

This publication was written before the onset of the current conflict in the Middle East.