FXRegional
July 29, 2021

RMB vs. USD: Watching Closely as China Builds ‘Parallel Universes’

Standard Chartered advises keeping an eye on China as accelerating use of the RMB helps the nation separate itself from the pack.In a recent meeting of NeuGroup for Tech Treasurers centered around China’s economy, Standard Chartered’s global head of research Eric Robertsen kicked things off with an anecdote. Just over ten years ago, a Congo-based wood supplier had its supply of wood bought out by a Chinese business that paid in USD. Just three years later, Chinese businesses were still…
FXRegionalRisk Management
July 1, 2021

The Option to Use Options: Hedging FX Risk in Emerging Markets

FX risk managers rely on flexibility at a multinational that wants to participate in beneficial currency moves. The ability to use options is essential for an FX risk manager at one NeuGroup member whose company wants to participate in favorable currency moves when hedging exposures in emerging markets. He described the company’s approach at a spring meeting sponsored by HSBC. The bank cited research showing that “the incentive to hedge EM risk has increased over the past 10 years” and “bouts…
CryptoRegionalTechnology
June 24, 2021

China and Beyond: Understanding Central Bank Digital Currencies

Insights from HSBC on CBDCs, as China’s tests of a government-backed digital currency, dubbed e-CNY, grow larger.Most multinationals in the NeuGroup Network do business in China, just one reason finance teams need to stay on top of the country’s expanding tests of a digital version of the yuan known as the e-CNY, a so-called central bank digital currency or CBDC. HSBC’s global head of FX research, Paul Mackel, spoke at a NeuGroup virtual interactive session sponsored by the bank this…
FXRegionalRisk Management
June 10, 2021

Rescue Mission: Saving Trapped Cash in Depreciating Currency Markets

For projects in volatile economies, creative thinking from treasury could be critical.Profit is not a profit until it’s back in the US. That reality for many multinationals formed the backdrop at a recent NeuGroup meeting for treasurers of large-cap companies where members shared their approaches on how to react when a country’s economic environment takes a problematic turn. Emerging market nations including Argentina, Turkey and Brazil dominated the conversation, as their currencies carry risk of intense devaluation, exacerbating regulatory rules that can trap…
RegionalTalking Shop
June 10, 2021

Talking Shop: Reducing Impact of Negative Interest Rates in Europe

Editor’s note: NeuGroup’s online communities provide members a forum to pose questions and give answers. Talking Shop shares valuable insights from these exchanges, anonymously. Send us your responses: insights@neugroup.com. Member Question: “What solutions are available to reduce the impact of negative interest rates in the eurozone? “Our bank there charges 1% on euro deposits. We have cash pooling, but converting to USD daily seems like a pain.” Peer answer 1: “Our global bank charges us 0.5% at the moment, but…
ESGRegional
June 3, 2021

Oil and Gas Treasurers Weigh Finance Roles in Transition Strategies

How much time do companies have? Takeaways from the first meeting of a NeuGroup focused on oil and gas treasury support of energy transition conducted in partnership with Societe Generale.By Joseph NeuLast week shook the oil and gas sector. Exxon Mobil saw two board seats go to directors backed by the energy transition activist hedge fund Engine No. 1 (yesterday, the company said a third seat will likely go to the fund), which convinced big asset managers to back its…
Cash & Working CapitalRegionalTalking Shop
May 6, 2021

Talking Shop: Processing Fees for a Domestic Cash Pool in China

Editor’s note: NeuGroup’s online communities give members another forum to find answers to their questions. Talking Shop shares valuable insights from these exchanges, anonymously. Send us your responses: insights@neugroup.com. Member question: “Has anybody set up a China domestic cash pool? I would like to understand market practice on the bank’s processing fee for this. “ is charging us a 0.1% processing fee on the outstanding borrowed balance in the domestic cash pool. Can someone give me a benchmark for this?” Peer answer:…
BankingRegionalTalking Shop
April 29, 2021

Talking Shop: Use a Non-Canadian Bank for Cash Management in Canada?

Editor’s note: NeuGroup brings members together to answer questions and help each other in a variety of forums, including online communities—one of many benefits of membership. Talking Shop shares valuable insights from these members-only exchanges, anonymously. Send us your responses: insights@neugroup.com. Member question: “Has anyone successfully used a non-Canadian bank for its primary cash management bank in Canada? If so, who? If not, why, and which Canadian bank are you using? “Our understanding is we need to have a Canadian bank,…
BankingRegional
April 1, 2021

Fight and Flight: Bank Fee on SEPA Payments From UK Sparks Pushback

Corporates respond by moving accounts to other countries, pushing banks to drop the fee and lobbying regulators.The number of banks charging corporates a fee for payments going from the UK to countries in the single euro payments area (SEPA) is growing, and some NeuGroup members are taking action to minimize the impact. Echoing what treasurers in Europe reported at a recent meeting, the head of cash product at a UK-based bank said that “a lot more banks in Europe are…
RegionalTalking Shop
March 4, 2021

Talking Shop: Italy’s New Way to Make Public Administration Payments

Member question: “As of the end of Feb., it is mandatory to pay the public administration in Italy through a payment system called PagoPA. To my knowledge, none of the big banks support this. We currently use a local Italian partner bank for this purpose. “Does anybody know if it is also mandatory to pay the public administration through this PagoPA system when paying from a nonresident legal entity outside Italy?” Peer answer 1: “We are in the process of…