Multinationals are increasingly looking to establish dual or multiple treasury centres across regions where they operate. These support international growth by providing local insight into regulatory trends and time-zone flexibility to support swift decision-making. The centres also provide companies headquartered in restricted markets with opportunities to grow internationally.
Most businesses have historically had a treasury department based at their corporate headquarters (HQ). However, interest in establishing dual or multiple treasury centres has accelerated in recent years as multinational corporations (MNCs) expand and look for ways to power growth and manage new international markets.
Regional treasury centres (RTCs) offer several advantages. Most obviously, they enable companies to support operations across different time zones with real-time services. By making local operations more efficient and responsive, they offer a cost advantage.
“As companies expand globally, time zones and having ‘boots on the ground’ really matter,” says Ruta Jukneviciute, an Executive Director for Structured Solutions at Standard Chartered with expertise in the Middle East and Africa region. “By setting up an RTC, you are moving away from a singular global focus to accommodate the growth and complexity in emerging markets. Having your staff on the ground enhances your agility, especially in critical situations such as a sudden change in regulatory restrictions or repatriation of trapped cash.”
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