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

The value of virtual accounts

Cash Management The value of virtual accounts

3d Aaran Fronda
Xero Stripe and PwC bring seamless payments to small businesses

Accounts Receivable Xero Stripe and PwC bring seamless payments to small businesses

6d Jay Ashar
How Trek Bicycles enhanced its global operations while mitigating payment fraud

Case Studies How Trek Bicycles enhanced its global operations while mitigating payment fraud

1m Austin Clark
Fed looks to expand financial institution definition

Netting/Pooling Fed looks to expand financial institution definition

1m Jay Ashar
Working capital finance provider receives big money backing

Cash Management Working capital finance provider receives big money backing

1m Jay Ashar
US firms treasured cash at a slower pace

Cash Management US firms treasured cash at a slower pace

2m Jay Ashar
The SAP Ariba and American Express partnership: What it means for treasurers

Cash Management The SAP Ariba and American Express partnership: What it means for treasurers

3m Austin Clark
How can businesses tackle working capital challenges in 2019?

Cash Management How can businesses tackle working capital challenges in 2019?

3m The Global Treasurer

Whitepapers & Resources

Sanction Screening: The risk for companies is real

Payments Sanction Screening: The risk for companies is real

4w
Enhancing your strategic position: Digitalization in Treasury

Payments Enhancing your strategic position: Digitalization in Treasury

1m
Are You Ready to Implement your GRC Solution?

Are You Ready to Implement your GRC Solution?

2m
Netting: An Immersive Guide to Global Reconciliation

Netting: An Immersive Guide to Global Reconciliation

4m