Bats at the Ready! – Navigating Treasury Curve Balls in 2022

Expecting the unexpected is de rigueur these days. So, we asked Peter Cunningham, Managing Director, Head of Corporate and Public Sector Sales, EMEA, Citi, to stand in left field, gaze into his crystal ball, and give us his predictions for the challenges and opportunities that treasurers might encounter in 2022.

The past two years have arguably been the ultimate test of treasurers’ ability to cope with curve balls.

Indeed, treasury professionals have had to pivot from one extreme to the other. As Cunningham explains: “This time last year, many corporates were still struggling liquidity-wise as a result of the Covid crisis. They were busy shoring up their positions, both through external capital-raising exercises and releasing cash internally by pulling levers in the cash conversion cycle.”

Now, 12 months on, the tables have turned. “Given government incentive schemes and quantitative easing, there is now an excess of liquidity in the market. This presents a different type of headache for treasury teams: many are struggling to find an effective home for their short-term liquidity, and this is exacerbated by the challenging rate environment.”

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