Cash & Liquidity Management
Published  12 MIN READ
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North American Liquidity: Change, Challenge, Opportunity

North American Liquidity: Change, Challenge, Opportunity

Over the past year, the interest rate environment in North America has been markedly different from that in regions such as Europe. Coupling this with potential cross-border cash efficiencies associated with NAFTA trade growth and the availability of innovative balance sheet investment options, means that treasurers in the region are not short of opportunities. Michael Havraniak, Regional Head of Liquidity, Global Liquidity and Cash Management, HSBC outlines these opportunities and examines some of the ways in which treasurers can maximise them.

Interest Rates

Interesting Times

While interest rates in regions such as Europe have remained low (and in some cases negative), rates in North America have recently been following a very different trajectory. In the US there have been six rate rises over the past 22 months, with Federal Reserve officials projecting a steeper path for rate rises in 2019 and 2020 [1], while in Canada there have been four increases in the policy rate since July 2017 [2].