Citibank China has unveiled a new foreign currency (FCY) cross-border treasury centre in the Shanghai Pilot Free Trade Zone (SFTZ).
The new treasury center is aimed at enabling multinational companies (MNC’s) to achieve greater treasury management efficiency, according to The Asset.
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As part of the new foreign currency structure, companies will be able to centralize their fund management functions by combining FCY cross-border pooling and payment netting.
In addition, the treasury centre will allow a multinational company (MNC) to use its SFTZ-registered entity as the vehicle to combine the group’s domestic cash pool and its global cash management structure.
Furthermore, the MNC will also use Citi’s netting system to include China into the global netting arrangement and settle the net amount with their offshore treasury center through netting.
Yigen Pei, country head of Citi Transaction Services for China, said: "This is a new step under the financial reform that is unfolding in SFTZ. By leveraging our global platforms and local expertise, Citi paves the way in the breakthrough of cross-border treasury centre solutions in China and strengthens our cooperation with both Chinese and foreign companies in the SFTZ.
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By GlobalData"These mandates illustrate how international companies can leverage off the opportunities presented in the Foreign Exchange Management Reform to obtain global treasury efficiencies," he added.
