Latest Cash Management Articles
The second half of this two-part article on the effects of euro depreciation looks at the various strategies that corporates and their treasury departments can adopt. It begins with the hedging strategy options for transaction exposure.
The depreciation of the euro (EUR) against the US dollar (USD) by about 10% since May 2014 has once again led corporate treasuries to focus their attention on their foreign exchange (FX) risk management activities and the performance of their hedging programmes. Part one of a two-part article examines the exposures created by the currency’s decline.
The focus on operational cash management increased significantly in 2014. With the ending of dollar quantitative easing (QE) 2015 has the potential for increased volatility in FX markets and a drive for greater control over sovereign currencies. All of this puts more pressure on the treasury function, forcing an even bigger focus on transparency across cash operations.
Europe’s gradual but inconsistent economic recovery will be evidenced during 2015 in the expanding EMEA loan market, as outlined by the Loan Market Association (LMA) at its recent London seminar.