Cash & Liquidity Management
Published  3 MIN READ
Please note: this article is over 8 years old. If you feel this article is inaccurate or contains errors get in touch here . Many thanks, TMI

Würth Group Implements Two-Way RMB Sweeping with HSBC

by Helen Sanders

24 March 2015

Global fastening products corporation Würth Group has recently mandated relationship bank HSBC Germany to implement an automated, two-way RMB sweeping solution between China and Germany. The solution enables the group, located in more than 80 countries, to sweep funds seamlessly from China to Germany and vice versa, making efficient use of their global cash balances.

Würth Group was quick to take advantage of the opportunity to include onshore RMB in global cash pools when it was launched in July 2014, and implemented a manual solution within a few weeks of the announcement once the necessary regulatory approval had been obtained.

Würth Group’s cash pooling solution involves a domestic RMB (CNY) cash pool in China that sweeps cash from group entities’ accounts in China into a pool header account. This account is then swept into an offshore RMB (CNH) account in Germany via a special cash concentration account. As CNH is a freely tradable liquid currency, group treasury can then use these balances in the same way as any other currency for group liquidity and investment purposes.

In March 2015, Würth Group mandated long-standing RMB cash management bank HSBC to automate this solution, enhancing operational efficiency on top of financial efficiency. One of the reasons that many organisations that have not already leveraged the ability to do cross-border sweeping in RMB is the need to comply with regulatory conditions. As Gabriele Schnell, HSBC’s head of payments and cash management in Germany explains, however,