Regional Liquidity Management: Making the Right Choices

• This article reviews some key regulatory hurdles in regional liquidity management structures, and a few key issues that can enable treasurers to minimise the impact of these hurdles and maximise their company’s regional liquidity.
• Some of these hurdles include non-convertible currencies, controls on foreign exchange and offshore accounts, and restricted automated cross-border cash concentration links.
• Successful strategies include a centralised treasury structure, choosing the right banking partner, knowing how to leverage the company’s trade flows and favouring electronic payment means over traditional paper instruments.
• Companies making these critical choices will maximise the benefits of these strategies. Choosing Hong Kong or Singapore as the location for a regional treasury centre will further minimise hurdles for treasury operations
in Asia Pacific.