Cash & Liquidity ManagementCash ManagementNetting/PoolingCiti Launches Multi-currency Notional Pooling with RMB Capability in China

Citi Launches Multi-currency Notional Pooling with RMB Capability in China

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.

Related Articles

Justin Meadows joins FXD Capital as Non-Executive Director

Cash & Liquidity Management Justin Meadows joins FXD Capital as Non-Executive Director

2d Jay Ashar
ANZ turns to Gresham for cash management solution

Cash Management ANZ turns to Gresham for cash management solution

2d Jay Ashar
Liquidity management a priority for treasurers and CFOs: Research

Cash & Liquidity Management Liquidity management a priority for treasurers and CFOs: Research

5d Jay Ashar
Why treasury needs to adopt CFaR/EaR...before it's too late

Cash Management Why treasury needs to adopt CFaR/EaR...before it's too late

7d Austin Clark
Factors to consider when centralising cash management

Cash Management Factors to consider when centralising cash management

2w Christian Bartsch
AFEX and FXD Capital to offer holistic FX and cash management solution

Cash & Liquidity Management AFEX and FXD Capital to offer holistic FX and cash management solution

3w Jay Ashar
Supply chain stability and sustainability fuelling payables finance evolution

Accounts Payable Supply chain stability and sustainability fuelling payables finance evolution

3w Austin Clark
Corporate treasurers investigate new FX risk strategies

Cash Management Corporate treasurers investigate new FX risk strategies

2m Jay Ashar

Whitepapers & Resources

Are You Ready to Implement your GRC Solution?

Are You Ready to Implement your GRC Solution?

5m
TIS Sanction Screening Survey Report

Payments TIS Sanction Screening Survey Report

2m
The Challenges of Regulatory Reporting

Brexit The Challenges of Regulatory Reporting

8m
Mitigating Costs and Exposure - A Multilateral Netting White Paper

Mitigating Costs and Exposure - A Multilateral Netting White Paper

7m