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Cash & Liquidity Management
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Cash and Treasury Management in Rapidly Growing Countries

BNP Paribas’ Cash Management University Preview

In the last two editions of TMI, we have been pleased to feature the 3rd BNP Paribas’ Cash Management University, which takes place on 8 – 9 October 2009 in Paris, France. This year, the event will focus on two of treasurers’ most important priorities: liquidity and risk. In the third article in this series, we preview another of the workshops that will take place during the event, looking at some of the issues for treasurers managing cash and treasury in the newer, rapidly growing economies, such as in Asia, Central and Eastern Europe (CEE) and the Middle East.

Companies are taking a holistic view of risk, including liquidity risk and counterparty risk, in some cases for the first time.

The economic crisis has hit every region in the world, and consequently, many of the challenges that have emerged as a result of the crisis are common to all companies. For example, multinational corporations, wherever they are headquartered, are seeking to maximise visibility and control over global cash, and ensure that as much cash as possible can be mobilised to meet financial obligations and external borrowings reduced. Companies either based in, or operating in rapidly growing economies, such as in parts of Asia, the Middle East and CEE, are no exception. As Soo Tat Kua, Head of Cash Management, Asia, BNP Paribas explains,

“Companies throughout the rapidly-growing economies are prioritising working capital improvements and risk management. In the former instance, there is an increased focus on gaining visibility over cash and increased efficiency, as well as a greater focus on banking and account consolidation and reviewing banking relationships.”

However, despite similar priorities, the tools that are available to these firms to deal with the crisis are not always the same as those in Western Europe and North America.