2025 Public Sector Perspectives

Effective implementation of these strategies requires the establishment of centralized treasury units and hiring professionals with expertise in global cash management, risk management, and foreign exchange. Familiarity with local banking landscapes and regulatory frameworks is also essential. Centralized treasury functions enhance control and efficiency, particularly in cash pooling, currency risk management, and liquidity optimization. A centralized treasury provides a single, consolidated view of cash flows, allowing the SOE to manage liquidity on a global scale and apply consistent risk management practices. Centralization also streamlines cash forecasting, strengthens governance over funds, and reduces the risk of fraud and errors. Choosing the right banking partner Given the complexities of managing cash globally, it is essential for SOEs to work with banking providers that have a strong international presence. While global reach is crucial, advanced technology is equally important. SOEs should prioritize banks that have a robust cash movement system powered by application programming interfaces, providing a more intuitive, flexible, and data-rich experience. These features streamline the payments process, making it easier for treasurers to digitize and improve transaction management. Centralized and standardized systems also give treasurers greater control over key processes. Additionally, it is vital for the banking provider to offer access to an extensive global liquidity network and 24/7 payment rails. This reduces transaction costs for SOEs and eliminates traditional FX fees, such as lifting and beneficiary bank fees. Operating across diverse regulatory environments can be resource-intensive. SOEs can benefit from consulting treasury advisors and treasury & trade solution sales teams at their banks for insights on best practices, local regulations, and solutions tailored to each market. Conclusion For SOEs expanding internationally, optimizing treasury structures, ensuring precise cash forecasting, and navigating local regulations are vital to success. While a centralized treasury enhances efficiency, maintaining local autonomy is essential for addressing region-specific risks. By implementing best practices in treasury management and staying up to date with global payment developments, SOEs can manage their financial operations effectively and support their strategic goals. A centralized treasury provides a single, consolidated view of cash flows , allowing the SOE to manage liquidity on a global scale and apply consistent risk management practices . Citi Perspectives for the Public Sector 61