Citi introduces new liquidity management solution Cross-Currency Sweeps

Maria Nikolova

The solution aggregates foreign currency balances into a currency and account of choice.

Citi, one of the world’s leading banks, today announces that it has launched Cross-Currency Sweeps, a liquidity management solution that aggregates foreign currency balances into a currency and account of choice.

The solution, which combines the capabilities of a cash concentration sweep with an automated currency conversion, enables clients to fund accounts and reduce FX risk exposure, across their global banking structure. Cross-Currency Sweeps leverage Citi’s global cash concentration network along with its FX provider platform. The solution aims to help treasurers mobilize cash when and where needed, in the right amount and currency, while optimizing investment and working capital strategies. Companies are thus able to reduce FX exposure and immediately convert available liquidity into a functional currency of their choice.

The solution may be used 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.

Citi has piloted the Cross-Currency Sweeps solution in Europe with Micron Technology, a large 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.

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”.

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