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

Rising rates put pressure on accuracy of cash forecasts

Cash Management Rising rates put pressure on accuracy of cash forecasts

4w Conor Deegan
Burn those spreadsheets - and 4 other ways that treasurers can help their CFOs sleep better

Automation Burn those spreadsheets - and 4 other ways that treasurers can help their CFOs sleep better

1m Bob Stark
How to forecast cash flow: what software should I use?

Cash Forecasting How to forecast cash flow: what software should I use?

1m Michael McCaw
What is the function of corporate treasury?

Cash Management What is the function of corporate treasury?

1m Michael McCaw
China’s regulatory changes stimulate international interest

Asia Pacific China’s regulatory changes stimulate international interest

2m Michael McCaw
Treasury TV: Jill Harrison, Whitbread Plc

10 Minutes With The Treasury Treasury TV: Jill Harrison, Whitbread Plc

2m Victoria Beckett
Cash flow in focus for investors

Cash Management Cash flow in focus for investors

2m Conor Deegan
What are the objectives of liquidity management?

Cash Management What are the objectives of liquidity management?

2m Michael McCaw