Treasurers agree on the need to manage FX risk in devaluation-prone Africa. But hedging products offered by banks can be prohibitively expensive.
For multinationals with complex operations, improved cash visibility and reporting may best be achieved by developing a bespoke solution in-house when vendors’ products fall short of requirements – and can also prove less challenging than anticipated.
Africa is a dynamic and challenging market. Companies operating across the continent must decide whether to deal with multiple local banks or outsource the task to a partner.
Commercial card payment volumes at Mastercard, Visa and American Express have hit a five-year high of US$2 trillion.
How logistics firm Aramex used purchasing cards to reduce working capital
Apple, Amazon and Google increased cash balances amid concern over China and slowing investment opportunities.
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Procter & Gamble has used cash unlocked by supply chain finance to fund a global robotic process automation programme.
Companies in Africa are reporting record growth, but FX risk is a unique challenge in the region and can be costly to manage.
Companies doing business in Brazil are implementing offshore cash management solutions to sidestep the country’s onerous financial transactions tax.
An initiative by a major bank to hedge its trade finance portfolio using securitisation has met with scepticism from treasurers.
US companies have become big investors in corporate bonds, but are starting to shed their portfolios.
During a volatile year, two corporates operating in Brazil found different ways to reduce FX risk.
Corporates are grappling with trade-offs between pricing and hedging in the face of FX and commodity volatility.
Container shipping company Maersk UAE was mired in paperwork that alienated customers. Then the company made its processes cashless.
US giants defend their no-hedging policy while accounting rules help keep Europeans in the pro-hedging camp.
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