The US Treasury has determined that China should no longer be designated as a currency manipulator. In a new report, Macroeconomic and Foreign Exchange Policies of Major Trading Partners of the United States, the Treasury cites economic reforms and commitments from China to refrain from devaluing the renminbi (RMB) as the reasons for this decision. […]
A new survey from Citi shows that gaining visibility of their FX exposures remains a core concern for corporate treasurers. In the survey, which includes responses from 400 corporates of varying sizes, industries and geographies, improving cash forecasting was cited most frequently as the top priority amongst these firms. “Firms are recognising that they still […]
Pulse It is fair to say, we think, that Citi’s Pulse is the ultimate corporate solution, so much so that this is the ninth year in a row it has won a Digital FX Award. As a workflow solution it is par excellence but its real strength lies in the nuances and flexibility around the […]
Kyriba, a provider of cloud treasury and finance solutions, has reached an agreement to acquire FiREapps, a firm that provides enterprise currency management solutions to corporate treasuries.“FX volatility is a major strategic challenge for treasury organisations,” says Kevin Permenter, senior research analyst for enterprise applications at IDC, a technology analyst firm. “Financial leaders doing business in multiple countries should be looking to adopt a more holistic approach to their global risk management strategies.”In a release issued today, Kyriba says: “The acquisition will create a highly advanced solution for managing global FX risk, including data gathering and consolidation, reporting, analytics, decision support, payments, hedge accounting and more. The combined result is a faster, more efficient way to manage FX exposures than using old school processes involving spreadsheets and manual data gathering across multiple systems.”
Shell’s Foreign Exchange Central Treasury business has implemented a Bloomberg service that connects its subsidiaries globally.
The solution is now available for use by any corporate treasury operation in the world, Bloomberg announced today.
The new technology was built by Bloomberg in collaboration with Shell and connects the company’s central treasury office directly to its 718 operating units in 22 countries, so they can quickly and electronically exchange information. The functionality aims to help Shell manage its group risk with more than 200 distinct bank counterparties via the Bloomberg Terminal.
FiREapps, a firm that provides technology to corporates that enables them to automate the analysis and management of currency data and exposures, has expanded its software offering from currency risk management to enterprise currency management (ECM).
ECM solutions enable treasury and finance professionals to assess, mitigate and report currency impacts on corporate financial statements and results.
But FiREapps says that what is more important than this is that the latest ECM solutions give financial planning and analysis (FP&A), supply chain and other finance professionals access to a common currency data platform that can be used to help avoid currency impacts, set and manage expectations of how currencies impact the business and make it easier to quickly and confidently answer currency-related questions from stakeholders.
Marcus Samuelsson, portfolio manager at Ericsson, talks about what “best execution” means from a corporate’s perspective.
Profit & Loss: It’s often assumed that corporates are less sensitive to FX pricing because they view it as part of a broader cost of their banking relationship. Do you think that assumption is fair or is it a bit outdated now?
Marcus Samuelsson: While Ithink that you’re correctthat many corporates do think oftheir FX as being part of a broader banking relationship, for us this is not the case.
There were a number of revealing statistics in the results of a risk management survey released this summer by HSBC in which 200 CFOs – or equivalent members of the finance department – and 296 senior treasury professionals took part.
The most immediately eye-catching amongst them was the fact that 70% of CFOs said that their companies have experienced lower earnings due to significant unhedged FX risk in the past two years, and moreover, that these were risks which their treasuries could have avoided.
Speaking at Profit & Loss Forex Network New York, Mike Gill, chief of staff to US Commodity Futures Trading Commission (CFTC) chairman, Christopher Giancarlo, and the CFTC’s COO, provided a fascinating look at how attitudes towards cryptocurrencies have changed in Washington recently.
Gill revealed that the CFTC received significant criticism within the walls of government last year for its approach to cryptocurrencies, such as bitcoin, which the agency allowed two exchange groups to list futures on at the end of last year.
The reason for this criticism, he said, was concerns about money laundering and illicit activity linked to bitcoin and other cryptocurrencies.
NEX Group (Nex) has launched a new cash and collateral movement workflow tool that enables clients to make cash movements and money market sweeps.
Created through the partnership between Nex Optimisation and Nex Markets, the new product, called Pivot, connects the Enso Core platform with Nex Treasury, a cash and FX liquidity management centre for the corporate and bank community. The new service aims to help buy side institutions act on cash insights identified within EnsoCore, a treasury, counterparty risk and portfolio financing workflow platform, to help clients make timely decisions to optimise their overall counterparty relationships, the firm says.
By using Pivot, Nex says that hedge funds will be able to execute cash payments directly through the portal for margin management, manage third party relationships, and invest excess cash in money market funds.