Citibank (China) Co (Citi China) is launching a multi-currency notional pooling with renminbi (RMB) capability, making it the first bank in China to offer a tool of this kind under its liquidity management product offering.
As one of the most advanced liquidity management solutions available to companies, multi-currency notional pooling is widely used at international financial centres such as London and Singapore. Often adopted by corporate treasury centres to efficiently manage cash flow from a centralised location, the solution can also help corporates manage cash in multiple currencies as a single position without altering foreign exchange (FX) exposures or having to perform FX swaps.
“The multi-currency notional pooling feature is a leading cash management tool and will significantly enhance the efficiency of our clients’ liquidity management,” said Yigen Pei, country head of Citi’s transaction services for China. “The introduction of RMB capability further underlines the importance of RMB as a strategic currency in treasury management and should also help promote Shanghai’s position as an international financial centre.”
With the multi-currency notional pooling solution, each account retains autonomy within the pool. The currency and account type of balances do not change and balances in different currencies are not co-mingled, but notionally aggregated. By doing so, corporate treasury centres can effectively leverage internal funding across currencies, and in turn, benefit from FX cost reductions and increased operational efficiencies.
With the end of 2017 fast approaching, many finance professionals might be counting down the days with some degree of dread. Year End is just around the corner and with it comes the many long hours accountants will spend going over balance sheets and profit and loss accounts, investigating account irregularities and chasing sign offs.
The top five sectors Asian fintech investors are interested in are data analytics, blockchain, lending, payments and regtech, according to Gary Hwa, EY regional managing partner.
On the third day of the Singapore Fintech Festival conference, there was a focus on specific applications of fintech innovation. One was trade finance, which is clearly is ripe for a revolution.
Kicking off day two of the Singapore Fintech Festival, Deloitte Chairman David Cruikshank said that fintech is significant for three reasons. First, customer expectations of services are higher than ever. Second, barriers to entry are lower than before. And finally, financial institutions (FIs) face a threat of what a competitor might do.