Cash & Liquidity Management
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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.