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Cash & Liquidity Management
Published  11 MIN READ
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When Domestic and International Collide

by Helen Sanders, Editor

There has been a long-held perception that, somehow, cash management is different in the United States from anywhere else in the world. It is true that payment instruments are not the same, as cheques are not used in most parts of Europe, and the regulatory environment also differs from that of other countries. However, this can be said when comparing any two countries in the world. As the largest exporter and importer of goods in the world, the US is the world’s biggest driver of globalisation. With continuing economic challenges in many western markets, few companies can focus on the US home market alone, and are increasingly looking overseas to achieve their growth ambitions. This article considers some of the current and future cash management priorities of companies either headquartered or doing business in the US, and some of the ways in which their banks are supporting them.

Cash management challenges

Dub Newman, Head of North America Global Treasury Solutions at Bank of America Merrill Lynch highlights three key, related issues that treasurers are facing:

“The dominant discussions amongst US treasurers and cash managers are how to obtain access to liquidity on one hand, and dealing with surplus cash in a low rate interest rate environment on the other. Many companies have built up large cash balances over recent years and now need to find ways of placing this cash. Another important trend is the need to achieve efficient financial processing, such as the increased use of electronic payments.”