Citi Launches Cross-Currency Sweeps for Liquidity Management

Published 

London – Citi has launched Cross-Currency Sweeps, a liquidity management solution that aggregates foreign currency balances into a currency and account of choice. By combining the capabilities of a cash concentration sweep with an automated currency conversion, clients are able to fund accounts and reduce FX risk exposure, across their global banking structure.

The solution leverages Citi’s global cash concentration network along with its FX provider platform. It is designed to help treasurers mobilize cash when and where needed, in the right amount and currency, while optimizing investment and working capital strategies. Companies are able to reduce FX exposure and immediately convert available liquidity into a functional currency of their choice.

Mark Smith, Global Head of Liquidity Management Services at Citi’s Treasury and Trade Solutions commented: “Cross-Currency Sweeps combines the breadth of Citi’s global network with advanced and integrated capabilities of our Foreign Exchange and Treasury and Trade Solutions (TTS) platforms. This provides a unique solution for our clients looking to optimize their liquidity management through greater automation, visibility and control”.

The solution is uniquely designed for both intraday and multi-bank sweep arrangements, enabling treasurers to automate foreign exchange dealings in hundreds of currency pairs. In doing so, clients can benefit from Citi’s Foreign Exchange platform, which provides global coverage for electronic pricing. There are a variety of sweep features including frequency, amount, and sweep conditions, which will give clients more control of their structures and liquidity globally.

“In today’s volatile market environment, client demand for efficient tools facilitating the aggregation of liquidity across different currencies and the optimization of FX risk management continues to grow”, said Flavio Figueiredo, Global Head of Corporate Sales, Rates & Currencies. “By integrating Citi’s local FX liquidity pools, market expertise, and globally harmonized FX technologies with our industry-leading liquidity solutions and services, Cross-Currency Sweeps offers a unique solution which allows clients to seamlessly transfer cross-currency liquidity in a timely fashion.”

Citi has successfully piloted the Cross-Currency Sweeps solution in Europe with Micron Technology, a producer of computer memory and computer data storage. The company needed to eliminate manual operational processes around forecasting of their non-dollar accounts as well as convert negative yielding Euro currency to US Dollars, which is the company’s functional currency. Citi’s Cross-Currency Sweeps solution helped the client automate their cash concentration process, enabled a more effective use of their liquidity, and provided a higher investment yield in their functional currency.

“With most customer receipts in US Dollars, as a company we are still required to maintain non-dollar accounts to support ongoing operating expenses. This requires resources from our treasury group to spend time forecasting non-dollar payments and to coordinate funding of individual accounts. In addition, negative yielding currencies such as EUR in London have a carry cost for us. Citi’s Cross Currency Sweeps solution has provided us with cash efficiency and concentration as well as the benefit of reduction in administrative overhead. This innovative sweep solution with integrated FX has significantly improved our overall cash management strategy.” says Robert Lambert, Assistant Treasurer at Micron.

Most recent episodes

40th Annual New York Cash Exchange: What Can Treasurers Expect?

Ahead of the 40th annual New York Cash Exchange, two of TMANY’s distinguished board members, David Miller and Timothy T. Hesler, CTP, provide TMI CEO, Robin Page, with a quickfire rundown of what attendees can expect from this year’s conference. Our guests share their aspirations for the event,...

00:00

Expectation-Beating Inflation Prints Ratchet Up Pressure on Monetary Policy

Welcome to the third edition of Liquidity Link Live, your exclusive market analysis provided by Northern Trust Asset Management, one of the world’s largest cash managers. Tune in each month to discover the very latest insights on the UK, Eurozone and US markets. This edition was recorded on the 9th May...

04:48

Making the Sustainable Transition: A Roadmap to ESG in Treasury

Over the last 18 months, Societe Generale has experienced a steady increase in requests from their corporate clients to integrate ESG features in treasury management.  Louis-David Rouyer, Philippe Pougeard, and Emmanuelle Petelle (Societe Generale) provide TMI’s Eleanor Hill with a whistlestop run...

22:24

Lift Off for Fed Rate Rises

Welcome to the latest edition of Liquidity Link Live, your exclusive market analysis provided by Northern Trust Asset Management, one of the world’s largest cash managers. Tune in each month to discover the very latest insights on the UK, Eurozone and US markets. This edition was recorded on the 5th of...

04:58

Treasury in 2022 and Beyond

Industry experts Bob Stark (Kyriba) and Sebastian di Paola (PwC) join TMI’s Editor, Eleanor Hill, to explore the very latest treasury trends – and to discuss how smart treasurers can get ahead of the game by ...

43:21

How BearingPoint Harnessed Data-Driven Forecasting with CashAnalytics and SAP

Listen back to our recent forecasting masterclass, where Group Treasurer Eveline Stam, and Conor Deegan (CashAnalytics) provided TMI’s Eleanor Hill with a comprehensive overview of how consultancy firm BearingPoint achieved company-wide cash forecasting nirvana by combining specialist solutions from...

37:14

The 3 T’s of The Future: Tech, Treasury, and Transformation

Over the past two years, an increasingly dynamic environment has not only accelerated technology development – from quantum computing to blockchain technology, and even the metaverse – but also technology adoption, bridging colleagues and breaking down silos in a remote work world. In this podcast,...

44:02

Monetary Policy Continues to Drive Markets as Ukraine Invasion Weighs on March Meetings

Welcome to the second edition of Liquidity Link Live, your exclusive market analysis provided by Northern Trust Asset Management, one of the world’s largest cash managers. Tune in each month to discover the very latest insights on the UK, Eurozone and US markets. This edition was recorded on the 3rd of...

05:25

Tax Spotlight: How the OECD’s Two-Pillar Solution Impacts Treasury

Aaron Lee and Joseph Lee (DBS Bank) join TMI’s Eleanor Hill to discuss how the OECD’s Two-Pillar Solution aims to address the tax challenges arising from the digitalisation of the economy. Ahead of the 2023 implementation date multinational corporates will have much to consider around these reforms....

24:00

FX Connections: Bringing Transparency to Cross-Currency Payments

Cross-border activity is growing at a remarkable rate, making FX payments a hot topic for treasurers across the globe.  In this TreasuryCast episode, Eleanor Hill asks Daniela Eder and Gibran Maqsood (Barclays Corporate Banking) to provide their key action points around FX payments in 2022. Our guests...

21:00