Citi launches Cross-Currency Sweeps for Liquidity Management

New cash concentration solution offers automated foreign exchange conversion

Citi has launched Cross-Currency Sweeps, a liquidity management solution that aggregates foreign currency balances into a currency and account of choice. By combining the capabilities of a cash concentration sweep with an automated currency conversion, clients are able to fund accounts and reduce FX risk exposure, across their global banking structure.

The solution leverages Citi’s global cash concentration network along with its FX provider platform. It is designed to help treasurers mobilize cash when and where needed, in the right amount and currency, while optimizing investment and working capital strategies. Companies are able to reduce FX exposure and immediately convert available liquidity into a functional currency of their choice.

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”.

The solution is uniquely designed 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.

“In today’s volatile market environment, client demand for efficient tools facilitating the aggregation of liquidity across different currencies and the optimization of FX risk management continues to grow”, said Flavio Figueiredo, Global Head of Corporate Sales, Rates & Currencies. “By integrating Citi’s local FX liquidity pools, market expertise, and globally harmonized FX technologies with our industry-leading liquidity solutions and services, Cross-Currency Sweeps offers a unique solution which allows clients to seamlessly transfer cross-currency liquidity in a timely fashion.”

Citi has successfully 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.

“With most customer receipts in US Dollars, as a company we are still required to maintain non-dollar accounts to support ongoing operating expenses. This requires resources from our treasury group to spend time forecasting non-dollar payments and to coordinate funding of individual accounts. In addition, negative yielding currencies such as EUR in London have a carry cost for us. Citi’s Cross Currency Sweeps solution has provided us with cash efficiency and concentration as well as the benefit of reduction in administrative overhead. This innovative sweep solution with integrated FX has significantly improved our overall cash management strategy.” says Robert Lambert, Assistant Treasurer at Micron.

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About Citi:

Citi, the leading global bank, has approximately 200 million customer accounts and does business in more than 160 countries and jurisdictions. Citi provides consumers, corporations, governments and institutions with a broad range of financial products and services, including consumer banking and credit, corporate and investment banking, securities brokerage, transaction services, and wealth management.

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Citi Media Contacts: EMEA: Belinda Marks [phone] [e-mail] North America: Nina Das 212 816 9267 [e-mail]