New Year, New Cash Strategies?

by Helen Sanders, Editor

Ring out the old, ring in the new,
Ring, happy bells, across the snow:
The year is going, let him go;
Ring out the false, ring in the true.

Alfred Lord Tennyson, In Memoriam, 1850

Finding clarity amidst noise and confusion is a problem for many treasurers, faced with a barrage of regulations, market volatility and geopolitical shocks. So in the world where Black Friday, Cyber Monday, Christmas markets, short days and long nights prevail, where should treasurers be focusing their time and attention?

Corporate cash balances continue to grow to record levels, both in companies’ home market and overseas, creating a growing challenge for corporate treasurers. In September, for example, Capital Economics calculated that US companies alone are holding $2.5 tr outside the US, an increase of nearly 20% in two years and nearly 14% of US gross domestic product (GDP). While the rationale for holding large surplus cash balances varies across organisations, depending on their working capital, business investment, tax and M&A strategies, the task of managing this cash falls to treasurers. 

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