Citi launches Cross-Currency Sweeps for Liquidity Management
October 16 2019 - 05:00AM
Business Wire
New cash concentration solution offers
automated foreign exchange conversion
Citi has launched Cross-Currency Sweeps, a liquidity management
solution that aggregates foreign currency balances into a currency
and account of choice. By combining the capabilities of a cash
concentration sweep with an automated currency conversion, clients
are able to fund accounts and reduce FX risk exposure, across their
global banking structure.
The solution leverages Citi’s global cash concentration network
along with its FX provider platform. It is designed to help
treasurers mobilize cash when and where needed, in the right amount
and currency, while optimizing investment and working capital
strategies. Companies are able to reduce FX exposure and
immediately convert available liquidity into a functional currency
of their choice.
Mark Smith, Global Head of Liquidity Management Services at
Citi’s Treasury and Trade Solutions commented: “Cross-Currency
Sweeps combines the breadth of Citi’s global network with advanced
and integrated capabilities of our Foreign Exchange and Treasury
and Trade Solutions (TTS) platforms. This provides a unique
solution for our clients looking to optimize their liquidity
management through greater automation, visibility and control”.
The solution is uniquely designed for both intraday and
multi-bank sweep arrangements, enabling treasurers to automate
foreign exchange dealings in hundreds of currency pairs. In doing
so, clients can benefit from Citi’s Foreign Exchange platform,
which provides global coverage for electronic pricing. There are a
variety of sweep features including frequency, amount, and sweep
conditions, which will give clients more control of their
structures and liquidity globally.
“In today’s volatile market environment, client demand for
efficient tools facilitating the aggregation of liquidity across
different currencies and the optimization of FX risk management
continues to grow”, said Flavio Figueiredo, Global Head of
Corporate Sales, Rates & Currencies. “By integrating Citi’s
local FX liquidity pools, market expertise, and globally harmonized
FX technologies with our industry-leading liquidity solutions and
services, Cross-Currency Sweeps offers a unique solution which
allows clients to seamlessly transfer cross-currency liquidity in a
timely fashion.”
Citi has successfully piloted the Cross-Currency Sweeps solution
in Europe with Micron Technology, a large producer of computer
memory and computer data storage. The company needed to eliminate
manual operational processes around forecasting of their non-dollar
accounts as well as convert negative yielding Euro currency to US
Dollars, which is the company’s functional currency. Citi’s
Cross-Currency Sweeps solution helped the client automate their
cash concentration process, enabled a more effective use of their
liquidity, and provided a higher investment yield in their
functional currency.
“With most customer receipts in US Dollars, as a company we are
still required to maintain non-dollar accounts to support ongoing
operating expenses. This requires resources from our treasury group
to spend time forecasting non-dollar payments and to coordinate
funding of individual accounts. In addition, negative yielding
currencies such as EUR in London have a carry cost for us. Citi’s
Cross Currency Sweeps solution has provided us with cash efficiency
and concentration as well as the benefit of reduction in
administrative overhead. This innovative sweep solution with
integrated FX has significantly improved our overall cash
management strategy.” says Robert Lambert, Assistant Treasurer at
Micron.
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About Citi:
Citi, the leading global bank, has approximately 200 million
customer accounts and does business in more than 160 countries and
jurisdictions. Citi provides consumers, corporations, governments
and institutions with a broad range of financial products and
services, including consumer banking and credit, corporate and
investment banking, securities brokerage, transaction services, and
wealth management.
Additional information may be found at www.citigroup.com |
Twitter: @Citi | YouTube: www.youtube.com/citi | Blog:
http://new.citi.com | Facebook: www.facebook.com/citi | LinkedIn:
www.linkedin.com/company/citi
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Citi Media Contacts: EMEA: Belinda Marks +44 20 7508 3082
belinda.marks@citi.com North America: Nina Das 212 816 9267
nina.das@citi.com
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