Treasury & FX in Turkey

Treasury & FX in Turkey

Call date: 25th Jun 2019

Participants described their company’s current approach and recent experiences with Treasury & FX in Turkey.

The call was chaired by Arnaud Francq, the key discussion details are below.

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Key areas of discussion

  • Funding local operations
  • Pricing in hard currency
  • Export finance
  • TRY hedging
  • Supplier payments

Hedging the Indian Rupee (INR)

Hedging INR

Call date: 6th March 2019

In this calls members discussed their hedging strategies and issues in India, including the pros and cons of hedging the INR onshore or offshore

The call was chaired by Christof Nelischer, the key issues discussed are listed below.

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Key areas of discussion

  • Offshore vs onshore – the trade offs
  • Issues & approaches to cashflow hedging
  •  Transferring trades between banks

Treasury & FX in Algeria

FX & Treasury in Algeria

Call date: 11th Jun 2019

Members from EU and the U.S compare their experiences with funding, payments and FX in Algeria.

The call was chaired by Arnaud Francq, the key discussion details are below.

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Key areas of discussion

  • Local ownership requirements
  • Documentary requirements for cash repatriation
  • Accessing hard currency
  • Local investment options
  • Vendor payments
  • INR bank accounts

Boletos & Receivables in Brazil

Boletos & receivables in Brazil

Call date: 19th May 2019

Participants, comprising senior treasurers from EU, Latin America and the U.S. compared their approaches to receivables and the use of Boletos and eBoletos in Brazil.

This call was chaired by Simon Jones, whose key take aways are listed below.

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Key Takeaways

  • Boletos are unique and are a great way to minimise DSO which is a major problem in many countries.
  • Bank charges for processing Boletos are seen as high, especially for paper – based Boletos.
  • Moving from paper to electronic reduces bank fees by 55% – but smaller clients are reluctant to change their processes
  • The move to electronic also reduces opportunities for fraud from paper-based Boletos (see CompleXCountries Report FX & Treasury in Brazil 30 Jan 2019)
  • Receiving payment via wire transfer reduces bank fees but has higher A/R processing costs as the remittance data is often poor.

Treasury & FX in Nigeria

Treasury & FX in Nigeria

Call date: 7th May 2019

Members from Africa, EU and the U.S. compared their experiences with FX and Treasury in Nigeria, including cash repatriation, hedging, local banking and bank accounts, sweeping, payments and signatories.

The call was chaired by Arnaud Francq, the key discussion details are below.

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Chairman’s take aways

  • Bureaucracy – continues to be a problem & cash repatriation is particularly complex.
  • Hedging is expensive
  • Although the FX market has improved recently- it is still hard to get the allocation you need.
  • Many companies are using a number of local banks (mostly for collections) and a couple of international banks
  • It is possible to sweep from local bank accounts into main header accounts – but the system isn’t always reliable
  • E Bills (Official name is Ebillspay, it leverages the NIBSS Instant Payment (NIP) platform) & NIBBS (Nigeria Interbank Settlement System, actually the Fund sweeping Service provided by NIBSS) are an option, but still has implementation glitches and it doesn’t work for all banks
  • The requirement to provide biometric data for the opening of bank accounts – in person – at Nigerian embassies is highly problematic for some companies

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Treasury & FX in Indonesia

Treasury & FX in Indonesia

Call date: 21st May 2019

In this call, members shared their experiences of cash and treasury management in Indonesia, including : experiences with customs, hedging, cash repatriation, customer credit and cash pooling.

The call was chaired by Damian Glendinnig, the key discussion areas are below.

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Key topics in this report

  • Cash repatriation
  • Customs delays
  • Local banking: collections, balance reporting & sweeping
  •  FX & Hedging
  • Funding operations
  • Cash pooling
  • Customer credit

Treasury & FX in South Korea

Treasury & FX in South Korea

Call date: 8th May 2019

This report covers treasurers from Asia and EU sharing experiences in S Korea, including: intercompany loans, FX risk management, interest on intercompany accounts, cross-border payments and multilateral netting.

This call was chaired by Simon Jones whose key takeaways appear below.

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Key discussion takeaways

  • Domestic intercompany loans are complex and difficult to set up. Cross-border intercompany loans (inbound) appear to be getting easier under the CMF structure.
  • FX risk management is straightforward, participants reported no issues with dividends and cash repatriation.
  • There is debate as to whether it is possible to charge interest on intercompany accounts
  • Cross-border payment processing under the KITA certificate (for volumes > US$50 million) works well though it is advisable to administer this locally for language reasons.
  • Multilateral netting for intercompany payments  is possible but requires heavy documentation – participants settled bilaterally.

Treasury & FX in Argentina

Treasury & FX in Argentina

Call date: 12th Mar 2019

In this call, ten members from Europe, Latin America and the U.S. discussed their approaches to treasury, FX and cash management in Argentina.

The call was chaired by Damian Glendinning  whose commentary appears below 

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Chairman’s commentary

Argentina is the country in South America which has come the closest to copying Venezuela’s example. Until the last elections, it was going down a path of economic isolationism: the government’s objective was to be self sufficient in everything. This enabled them to pursue policies which destroyed economic competitiveness – but that is not a problem if you do not trade with the outside world. Key amongst these policies was, as in Venezuela, distribution of wealth to the poorer citizens. In a democracy where a high percentage of the citizens are poor – despite the huge natural resources both countries possess – this policy is likely to win elections, irrespective of the drawbacks which are obvious to those who are better off.

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Treasury & FX in South Africa

Treasury & FX in South Africa

Call date: 27th March  2019

In this called members discussed their approaches and issues related to cash & treasury management in South Africa, including:

  • Intercompany netting
  • Domestic sweeping
  • Online multibank FX dealing

The key take aways from this call are listed below.

The call was chaired by Simon Jones whose commentary is below.

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Key Take Aways

Intercompany netting settlement of payables and receivables is possible, but Central Bank approvals are required on an annual basis to do this, to make the exchange control document on each invoice easier. 

 Domestic sweeping structures between South African  entities is very common to one domestic master entity and recently a large MNC has obtained Central bank approval to cross border lend and borrow from this entity to a European treasury centre.  This process requires an annual recertification, like Interco netting.

 FX online multibank dealing systems are being used in South Africa, but getting the domestic & International banks to agree to use these platforms differs bank by bank and even corporate to corporate.

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Treasury & FX in China

Treasury & FX in China

Call date: 14th March  2019

This report covers two calls in which  members from Asia, Europe and the U.S shared their approaches to cash and treasury issues in China, including:

  • Entrustment loans
  • Cross border pooling
  • Invoicing from China in CNY
  • eBADS
  • Overdrafts

The key take aways from this call are listed below.

The call was chaired by Simon Jones

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Key Take Aways

Entrustment pools in China continue to be used extensively and increasingly in a tax effective manner. 

Cross border pooling is also working well in China for most clients using it, especially out of Shanghai, but differences (3 months or 6 months) exist on how often banks require the CNY to return to China before it can be swept out again. 

Invoicing for exports from China in CNY is speeding up the receipt of funds to bank accounts in China versus using FX currency. 

eBADs is being used more by corporates in China, but there continues to be many paper based BADs still used by the Chinese suppliers and banks and the terms vary significantly across banks

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