23
Citi Perspectives
| Q1/Q2 2015
are responding and how this will
impact their deposits, investments and
wider currency market movements.”
Against this backdrop of uncertainty,
there is one safe bet, says Elms,
namely that this new territory for
interest and FX rates is here to stay,
for the foreseeable future at least.
“This is the new normal — and it is
this environment that treasurers
and banks need to be comfortable
operating in.”
Adapting to change
What this means is that while it is
important to continue to build on
the best practices that have been
honed within treasury departments
in recent years, forward-looking
treasurers must also examine ways
to adapt and optimize their liquidity
structures accordingly.
“One very noticeable trend that
we are observing among leading
treasuries is the conscious decision
to exclude certain pockets of
The first
and perhaps
hardest hitting
change — at
least for
those in the
corporate
treasury
profession
— is the
introduction
of negative
interest rates.
