Treasury & FX in Russia

Treasury & FX in Russia

Call date: 30th Jan 2019

In this call, members discussed their approaches to treasury, FX and cash management in Russia.

The call was chaired by Arnaud Francq  whose Key Take Outs are set out below

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Key Take Outs

  • Documentation – complex, time consuming & critical
  • Inter banks – 2 way pooling is available in theory but not at all straight forward in practice
  • Find hedging banks- operating outside to inside
  • Sanctions are very specific – details are key and need to be looked at closely

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WORKING CAPITAL Policy: manage the level? How to handle the business trade-offs?

The Working Capital Series Part I

In this recorded presentation, Damian Glendinning identifies the trade-offs that corporates need to make when establishing a Working Capital Policy.

The Working Capital Series comprises six presentations on working capital:

1.Policy: manage the level? –  How to handle the business trade-offs? 

2.How do we fund it? –  On or off balance sheet? Long or short term? 

3.Instruments – factoring, LCs, etc. – and the accounting treatment.

4.Accounting, measurements, incentives and KPIs

5.New technology and funders – internet portals 

6.Business creep –  keeping up with changes in the business model 

Notes on china

Notes on China

Call date: 22nd Nov 2018

This report comprises Damian Glendinning’s commentary on some of the issues raised in our Treasury peer Call on Repatriating Cash from China which took place on 22nd Nov 2018.

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Topics covered in this report

  • Flexibility is Key
  • Internal pooling arrangements
  • Banker’s acceptance drafts
  • Structure
  • Banking system

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repatriating cash from china

Repatriating cash from China

Call date: 22nd Nov 2018

In this call, members discussed cash repatriation from China, including: Dividends, Cross-border pooling, Entrustment loans and Euro invoicing.

The call was expert chaired by Simon Jones, whose conclusion appears below.

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Chair’s conclusion

Cash can be liberated from China. Dividends are the most robust route to doing this, but cross border sweeping is back in action and working for some corporates. Getting the right local concentration structure is important to leveraging a cross border liberation of cash offshore and can be done in a tax effective way. Invoicing cross border is an equally important topic and as businesses grow tends to become more in local currency via local entities and therefore means more potential cash in China to repatriate in the future

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Treasury & FX in Turkey

Treasury & FX in Turkey

Call date: 12th Dec 2018

In this call, members shared their approaches to Treasury & FX in Turkey, including:

  • Currency issues
  • Financing
  • Hedging
  • Credit insurance

The call was chaired by Arnaud Francq whose key takeaways are listed below.

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Key Takeaways

  • A number of participants have local distribution but import products from outside Turkey, this creates a mismatch between sourcing in EUR/USD and sale in TRY causing currency exposure.
  • Local financing is becoming very expensive, some companies are focusing on reducing local borrowing/debt as a matter of priority.
  • Hedging is becoming very expensive, in some cases, it might be easier to limit the currency exposure of the local entity and centralize hedging at HQ level.
  • Currency volatility is creating increased challenges for reporting (mark to market) .
  • As the economic conditions are becoming more challenging, some participants observed some lengthening of payment terms.
  • Increasing limits for local credit insurance is becoming more and more difficult

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