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EuroFinance International Treasury Management: Navigating the future with innovative hedging strategies on Day Two 

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Day two of the EuroFinance International Treasury Management conference in Copenhagen carried forward the energy of the opening day. The enthusiasm for networking and engaging discussions remained strong, fostering meaningful connections and insightful exchanges throughout the day.

What is the future of money?

The day began with an engaging discussion on the future of money—a topic that captures everyone’s curiosity.

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The discussion on how the future of money is evolving centred on the transformative impact of new technologies on financial systems and business models. Key insights included the shift towards faster payments and the pressing need to modernise financial infrastructure. Blockchain was highlighted for its potential to streamline supply chain logistics, while smart contracts were identified as tools for enabling more secure and efficient transactions.

Concerns were raised about the decline of physical currency, as digital currencies continue to rise in prominence. A comparison between Bitcoin and central bank digital currencies (CBDCs), a digital form of a country’s fiat currency, illustrated the contrasting approaches of decentralised versus centralised models. The role of central banks in adapting to these changes, along with the necessity for collaboration between banks and treasury systems, was emphasised as crucial for navigating this evolving financial landscape.

The discussion underscored a universal truth: we all love money and thrive on its free flow. We need innovation, experimentation, and collaboration beyond traditional financial institutions to tackle inefficiencies in modern financial markets. Experts emphasised the importance of gaining a deep understanding of the entire financial market infrastructure to drive value and address pressing societal challenges, including those worsened by the pandemic.

There was an emphasis that understanding the intricacies of the entire financial market infrastructure is essential for unlocking value and tackling significant challenges, particularly those intensified by the pandemic. The conversation also celebrated a transformative shift—from a system where money can be blocked to one where it flows freely, empowering individuals and businesses alike to navigate a more dynamic and responsive financial landscape.

Interest rate and inflation

During day two of the EuroFinance conference, participants engaged in discussions highlighting the ongoing uncertainty in global markets regarding inflation and interest rates. Treasurers and their banking partners explored the need for innovative treasury solutions to effectively mitigate financial risks. Key strategies discussed included the implementation of fixed-rate cash accounts, the use of hedging products in foreign exchange and commodities, and the development of working capital solutions and short-term cash investment yields. The focus was on optimising cash balances in a challenging environment characterised by rate uncertainty and elevated capital costs.

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As participants looked ahead, they recognised that if the medium-term economic outlook improves as expected through 2025 and 2026—driven by enhanced GDP growth, falling inflation, and potential rate cuts—banks and treasurers may need to rethink their risk relationships and adopt new approaches to cash management and liquidity solutions. This evolving landscape underscores the importance of proactive collaboration and adaptability in navigating the complexities of the financial market.

During the discussion on forex risk management, it was evident that a significant majority of participants—over 60%—view data quality and exposure tracking as their primary challenge. This highlights the critical role that accurate data and robust tracking systems play in effectively managing foreign exchange risks. In contrast, concerns regarding the timing of exposure and uncertainty surrounding currency movements received much less emphasis, indicating that for many treasury teams, addressing data quality issues is a key priority.

The grande finale!

As we look ahead to Day 3, the final day of the conference promises to be just as impactful. Attendees can expect sessions on Tech Trends for Corporates and Consumers, where the latest innovations transforming business and everyday life will be explored. The spotlight will also be on Strategic Leadership in Treasury and Finance: Creating New Paths, showcasing how forward-thinking treasury leaders are shaping the future of finance.

The day will culminate in the prestigious EuroFinance Treasury Awards for Excellence, celebrating the achievements of pioneering treasury teams that have set new standards in the industry. And to close the conference on an inspiring note, journalist and best-selling author Helen Russell will deliver a keynote on Discovering Hygge: Pathways to Global Happiness. Based on her books The Year of Living Danishly and The Atlas of Happiness, Russell will offer insights into Denmark’s secrets for happiness and share practical tips on living more Danishly, no matter where you are.

Day Three promises to be a fitting finale to a transformative conference!