This call comprised the presentation of a proposed strategy for handling illiquid currencies, followed by a peer group discussion & feedback session covering the different approaches of the companies involved
The presentation was made by Christof Nelischer, who also chaired the discussion. The key findings are detailed below.
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All agreed that a written policy is a good idea – although not all had a formal one, some were in the process of producing one, or decided to formalise their policy as a result of the discussion.
Any policy should be applied flexibly, with treasury working closely with senior management and commercial to get the optimum results for the business. Flexibility should manifest itself as Treasury having some discretion as to the interpretation of illiquid currencies and policy statements.
Dialogue with commercial and senior management over currency issues should be ongoing, including educating supply chain and sales on the issues of illiquid currencies. Raising the topic of illiquid currencies away from a crisis shows Treasury as being pro-active and forward thinking. However, if there is a crisis – don’t waste the opportunity
CompleXCountries Treasury Peer Calls are expert-led confidential peer group calls in which a small group of expert treasurers compare their approaches to specialist treasury challenges, answer each others’ questions and combine knowledge. If you would like to know more about what we do, or to receive our Global Treasury Intelligence reports, please get in touch.