Looking for a new job within the world of Treasury? Our partner ILFA is looking for new colleagues (Dutch)!

22-06-2022 | treasuryXL | ILFA | LinkedIn |

 

ILFA is momenteel op zoek naar 3 nieuwe collega’s! Misschien ben jij wel degene die zijn/haar carrière kan voortzetten bij dit veelzijdige en dynamische bedrijf. Zie beneden de openstaande vacatures bij ILFA.

 



Ilfa is een veelzijdig en dynamisch bedrijf. Er is voor getalenteerde mensen altijd plaats, van student of young professional tot ervaren rot in het vak. We mixen software met service, ervaring met een frisse blik en aanpakken met ondersteuning. Wij waarderen verantwoordelijkheidsgevoel, leergierigheid en pro-activiteit. Wij zijn altijd op zoek naar mensen die hun talenten en expertise willen inzetten voor hun eigen ontwikkeling en de groei van Ilfa. Ook stagiaires zijn van harte welkom. Aanstormend talent op financieel economisch gebied, IT, marketing of sales is bij ons welkom om zich verder te ontwikkelen. Al menig student is je voorgegaan! Zie beneden de openstaande vacatures bij ILFA.

Ook open sollicitaties zijn ook van harte welkom. Stuur een motivatiebrief met cv naar: info@ilfa.nl.


Treasury in transition – explore the agenda for EuroFinance International Treasury Management

13-06-2022 | Eurofinance | treasuryXL | LinkedIn

 

Featuring keynote speakers, Guy Verhofstadt and Göran Carstedt…

The 31st annual EuroFinance International Treasury Management returns in-person this September 21st-23rd in Vienna. With treasury changing like never before, join more than 2000 attendees, including 150 world-class speakers for transformative insights and the year’s best networking.



  • Inspirational headline speakers– including member of European Parliament, Guy Verhofstadt and and one of the world’s top business minds, former head of IKEA, Göran Carstedt
  • Practical insights from case studies across 5 streams– explore the latest innovations driving change and how to apply them to your treasury
  • The new Future of Money Stage– a dynamic experience for disruptive ground-breaking ideas from crypto to the token economy
  • Meet with more than 100 banking and tech partnerson the exhibition floor and  join forces to innovate and shape the future

Learn from the experiences of more than 150 best-in-class treasurers including:
– Abraham Geldenhuys, VP and group treasurer, Kongsberg Automotive
– Yang Xu, SVP, corporate development and global treasurer, Kraft Heinz
– Alex Ashby, Head of treasury – Markets, Tesco
– Debbie Kaya, Senior director of treasury, Cisco Systems, Inc.
– Daniel Melski, VP finance and treasurer, Church & Dwight Co., Inc.
– Angel Cheung, Assistant treasurer, John Lewis Partnership

For more information and to register, visit: https://www.eurofinance.com/international

 

TreasuryXL contacts can claim a 10% discount with code: MKTG/TXL10 on top of the early-bird price which expires on July 29th – a combined saving of over €2000.  Register here today.

We hope to welcome you in Vienna.

The EuroFinance Team


About EuroFinance

EuroFinance, part of The Economist Group, is a leading global provider of treasury, cash management and risk events, research and training. With over 30 years of experience, our mission is to bring together the brightest minds and most influential voices in treasury. Through in-depth research with 1,000 corporate treasury professionals every year, we have a unique insight into the trends and developments within the profession and an unrivalled global viewpoint.

Contacts

Marianne Ford
Senior Marketing Manager
EuroFinance

Economist Impact
[email protected]


Navigating emerging markets with a corporate treasury hat

09-06-2022 | Vasu Reddy | treasuryXL | LinkedIn |

 

Unlike many developed markets, like the US, which has 50 states, a single currency, single banking platform, one government, one central bank and monetary policy with no cash and currency restrictions, a developed global banking footprint and infrastructure Sub-Sharan Africa has the inverse, 25 countries, 25 different currencies and banking platforms, 25 different Central banks including monetary policies, 21 of which has strict Exchange control rules requiring prior approvals and document submissions for repatriation.

Article written by Vasu Reddy

 

What makes Corporate Treasury difficult in Africa

Doing business in Africa is an extremely long marathon and not for the faint-hearted. When your day-to-day activities are always faced with different risks and complexities, unforeseen and uncertain changes, and challenges in regulation and commercial environments with moving targets, one needs to be focused on the bigger picture about survival and growing the business and investment in the long term growth.

Overseeing a region spanning 25 countries with the Finance hubs being South Africa, Nigeria, Angola, Ghana, and Kenya and the latter being a Centre of Excellence for the rest of Sub-Saharan Africa, my main responsibilities included providing strategic and operational Treasury leadership with a focus on developing cash, liquidity and banking strategies, Developing and maintaining Banking relationships, Funding/capital and Debt structuring, Bank negotiation, Bank facility/documentation finalization, foreign exchange and Exposure management, Credit and Market Risk, Trade and Transaction solutions, Commercial/Project financing and Exchange Control and bank regulatory/compliance. Reporting into Corporate Treasury offshore with a dotted line into Africa CFO based in Kenya.

Apart from resilience and grit, one must operate adopting the “Lean” principles to ensure that the Leader navigates with focus, inclusiveness, integrity, transparency, and collaboration leveraging on operational excellence, world-class fit for purpose innovative solutions, technologies, and relationships leading the cross-functional diverse teams across multiple geographies and cultures across the different business verticals and functional areas operating in complex and challenging markets within a matrix organization that is impactful and exceeds business objectives.


 

Vasu joined GE from Chevron Oil Inc, South Africa where he was the Senior Treasury Manager, covering South & Central Africa for 7 years, and before that was at Land and Development Bank of SA before spending 6 years at Woolworths Holdings Ltd in various Treasury and Accounting roles. He is a highly experienced professional with 25 years’ Treasury, banking and Finance experience having worked in Multinational companies in Retail, Banking, Oil & Gas sectors, and diversified industries and capital.

Vasu’s academic background includes a Bachelor of Commerce (Accounting) degree, an Honours degree in Financial Management from the University of Cape Town, Postgraduate Diploma in Accounting from the University of KwaZulu Natal, South Africa. Vasu has completed the Leadership Executive Program (LEP) at the Graduate School of Business, Cape Town. Vasu has attended Advanced leadership courses at the GE Institute of Management, Crontonville, New York. Vasu is a member of the Association of Corporate Treasurers, South Africa, and a Certified Treasury professional with the Association of Financial Professionals, USA. He has been on various Treasury Community webinars and panel discussions/presentations at the Euro Finance, London.

The move into Treasury from Accounting seemed exciting with each day being different since it is more forward-looking and has external bank collaborations rather than the mere recording of past transactions. Although Treasury could be characterized as a more specialized function to some finance professionals, It entailed being pro-active, forward-looking,  engaging with banks and financial institutions, keeping abreast of market dynamics, and providing advice and information on critical business decision making on a real-time basis which would have major impacts on the future business profitability.

 


Surviving the Challenges

Africa is a tough market to operate in and will always be considered an “emerging market” due to the infrastructure challenges and political climate, however, it would seem lucrative due to its ever-growing population and need for products and services. Many large Corporates including South African listed Multinationals looked to Africa for Growth expansion wanting to grow their businesses and increase shareholder value, to only experience huge challenges ranging from Supply-chain disruptions and delays, slow business responses, High costs of doing business, poor credit rating customers and banks, strict and changing regulation, lack of Foreign currency for repatriation resulting in huge trapped cash, delays with Central bank approvals, poor technology, and manual intervention, lack of global banking presence, lack of customer deal financing, political risks, highly cyclical commodity-driven markets that lack diversification for currency flow and with lots of red tape with no focus on developing policies to encourage and welcome foreign investment.

“A Treasurer needs to always be proactive, thinking consistently “out of the box”, and consistently exploring innovative ways to pivot”


As a Treasurer/CFO, one should understand that these challenges will not disappear any time soon. One needs to always be proactive, thinking consistently “out of the box”, and consistently exploring innovative ways to pivot. When global corporations execute deals in Africa, end-to-end due diligence needs to be performed not just on pure profitability and return on investment but considering the holistic cash repatriation risks and costs including detailed country analysis involved per deal. This is due to the common shortage of foreign currency liquidity that is required to repatriate cash for imports, inter-co loans settlements, dividends, etc. In most markets, the flow of currency and exchange rate is controlled by the Central Bank. In 2015, with the oil price crash, and in 2020 with the Covid 19 pandemic, the trapped cash balances increased due to the US Dollar currency shortage because of poor foreign flows. Corporates needed to work proactively with their multiple banking partners to source foreign currency liquidity, where in some cases we had to ringfence our export proceeds with the banking partner and place orders strategically in the foreign currency queue to secure foreign currency which was used to settle the outgoing foreign currency payments in countries like Nigeria and Angola. Other alternatives involved banking multiple partners who bank the large exporters that have access to foreign currency liquidity in countries such as Mozambique and Ethiopia, however considering that proper credit risk analysis was performed on these banks. Other alternatives in 2015 involved working with Export Finance Agencies to provide a guarantee to the local Government through refinancing of exports from the UK to Angola where this foreign currency liquidity via an inward loan to the Government would be used for repatriation and the Debt with the local government will be sold Offshore with the proceeds being received offshore. Due to its complexity, the local government was not open to execution

Partnership and Playing by Rules

Since reputation risk and compliance is more apparent now than ever with Multinationals, it is paramount to ensure that the rules are strictly adhered to by the regulatory authorities since the operations in Africa were always seen as a long-term investment to grow the current businesses, considering that Africa presented incredulous growth opportunities for the foreseeable future. Regular meetings with Central Banks were held by Treasury and with Governments by Senior leadership to forge a collaborative partnership with a focus on investments in localization through manufacturing and assembling sites, job creation, and help in building infrastructure.

 

Another critical Treasury partnership is the global, regional, and local banks. Large Multinationals have a preferred bank partner list based on their global relationships, balance sheet size, market presence, and risk and credit rating. The challenge is that not all the Global banks have a presence in all African countries, In Ethiopia, the local market is closed to foreign banks. The preferred option was the order to an initial bank with a Global bank, then a regional bank, and lastly a local bank or if required by a localization law. An example in mind is Ghana, where you were required to have an account with an indigenous bank if you wanted to bid for local business.  The advantages of partnering with the Global banks offered multiple layers of contact points for escalation and efficiency, prompt service responses, interest optimization options and economies of scale benefits, universal language on trade finance, guarantees and facilities including bank mandates, negotiable price to book fees, straight to bank processing, access to US Dollar flows, etc.

 

Technology and Digitization    

Digitization and automation are pivotal for the future of Treasury and especially in Africa as this will ensure simplification, efficiency and effectiveness, cost reduction, faster response, and a more controlled and structured banking environment with fewer errors and risk of fraud. This should be coupled with AI to centralize processes as much as possible. Africa’s banking processes and platforms have room for development on technology advancements and the Covid’19 pandemic has forced most countries to rethink investing in technology and upscaling.

 

Ears close to the ground

Due to the diverse and extremely challenging banking operations, one requires strong technical competence, effective communication skills, consistently researching innovative ideas, and close relationships. One will find it challenging to manage the African operations with an “Arm-Chair” Treasurer sitting offshore. You would need to be close to the business operations, and functional teams like tax, legal, and banking teams on the ground. Whether one is researching a structured inter-co loan via a cross-currency swap, local hedge solution mitigating Zimbabwe hyperinflation, securing foreign currency in Mozambique, buying/selling Angolan Government bonds to maximize yield, obtaining Central bank approval on cash pooling arrangements in South Africa, or dividends repatriation or understanding the different Dollar rates offered in the Nigerian controlled market, one needs to have consistent and regular discussions with the banking partners and stay abreast of changes in each local market. One needs to also keep the local and global business leaders in the loop of changes and progress to manage expectations as some folks believe that if it can be done in New York, surely it can be executed in Africa as well.


 

Vasu Reddy

Corporate Treasury, Finance Executive

Treasury Do’s & Don’ts: In-house bank (Dutch)

02-06-2022 | treasuryXL | ILFA | LinkedIn |

 

Dinsdag 7 juni om 16:00 houdt ILFA een gratis kennissessie over In-house banking. Wat is In-house bank en wat is het doel ervan? Welke voordelen zijn er en hoe werkt het precies?

 



Een Ilfa kennissessie over In-house bank

Wat is In-house bank en wat is het doel ervan? Welke voordelen zijn er en hoe werkt het precies? Deze onderwerpen passeren de revue tijdens onze webinar over In-house bank. In ongeveer een uur beantwoorden Arnoud Doornbos, treasury specialist, en Filip Verboven, treasury softwareontwikkelaar, deze vragen en laten zij aan de hand van voorbeelden zien wat de toegevoegde waarde van In-house banking is voor de treasury afdeling.

De webinar start op dinsdag 7 juni om 16:00 en duurt ongeveer een uur. U kunt deelnemen via deze link: https://ilfa.my.webex.com/meet/info. Vooraf aanmelden is niet nodig.

De webinar openen

Om toegang te krijgen tot de beveiligde Webex-omgeving van de webinar moet u een aantal stappen volgen. Klik op de link en vervolgens op ‘Neem deel vanuit uw browser’. Vul uw naam in en de tekst op de afbeelding. Uw e-mailadres is niet nodig. Klik op ‘Volgende’ en sta toe dat Webex gebruikt maakt van uw camera en microfoon (indien aanwezig). U kunt nu kiezen of u uw microfoon wilt dempen en uw video wilt stoppen. Wanneer u uw keuze gemaakt heeft, klikt u op ‘Deelnemen aan vergadering’. U zit nu in de webinar.


Subscribe and receive your 41 pages ‘easy-to-read’ eBook, What is Treasury?

16-05-2022 | treasuryXL | LinkedIn |

 

Treasury, Corporate Finance, Cash Management, Risk Management, Working Capital Management and Blockchain. What are the purposes of these treasury functions?

treasuryXL created this eBook based on the most relevant best practices that Treasury experts provided over the last years. We bundled the most important information for you and created easy to read and understand articles about the main subjects within the World of Treasury.

We took a deeper dive into each of the above-mentioned treasury functions and highlight:

  • The purpose of each named Treasury function (What is?)
  • What specialists do
  • Examples of Activities
  • Summary of Frequently Asked Questions and answers
  • Conclusion

How to receive this eBook for Free?

We simply giveaway two presents for you! By signing up for our newsletter you will automatically receive the following in your inbox:

  1. On Fridays, our Coffee Break weekly newsletter will land in your inbox. In this weekly newsletter, we will highlight the whole week full of the latest treasury news within our community.
  2. The 41 pages eBook, What is Treasury?

 

Subscribe, Join, Download and Relax.

Welcome to our community and have fun reading!

 

 

Director, Community & Partners at treasuryXL

 

 

 

 

The world’s largest treasury event is returning to Vienna in September | 10% discount via treasuryXL

09-05-2022 | Eurofinance | treasuryXL |

 

EuroFinance International Treasury Management, the world’s largest and most influential treasury event, will take place in Vienna from September 21st-23rd 2022. Returning in-person after 3 years with more than 2000 attendees including 150 world-class speakers, the event offers unparalleled networking and insights from the world’s most senior corporate treasurers. treasuryXL is proud media partner of the 31st edition of the EuroFinance event.



Why attend?

  • Be inspired by headline speakers as they interrogate a changed world including Guy Verhofstadt, member of the European Parliament and Göran Carstedt, former corporate executive of Volvo and IKEA
  • Get practical solutions to treasury challenges with new case studies and immersive discovery labs
  • Hear from the disruptors at the new The Future of Money Stage
  • Delve into the latest innovations and new technology driving change, and how to apply them to your treasury
  • Meet with more than 100 banking and tech partners and join forces to innovate and shape the future

 

For the full agenda and to register, please click here

TreasuryXL contacts can claim a 10% discount with code: MKTG/TXL10

 

Why becoming a Register Treasurer is so much more than completing a course!

02-05-2022 | treasuryXL | Pieter de KiewitLinkedIn |

 

Next to being a treasury recruiter, I am also a very happy member of the so-called curatorium of the postgraduate education Treasury Management & Corporate Finance of the Vrije Universiteit Amsterdam. Graduates completed an intense 18-month program and can be recognized by the “RT” behind their name: Register Treasurer which can be translated into “chartered treasurer”. The program is taught in English, has already existed for over 20 years and there are many “RTs” in prominent places in the treasury community. Last week, I attended the latest diploma ceremony, was inspired, and decided I want to tell you more.

Read more

The impact of the monetary policy of central banks on FX hedging

28-04-2022 | treasuryXL | ILFA | LinkedIn |

 

Several central banks in the world have adjusted their monetary policy since Q4 2021. In Europe, it was the Hungarian central bank that chose to raise its key rate from 0.60% to 0.90% on June 23, 2021. A day later the Czech central bank followed suit with an increase in the main interest rate from 0.25% to 0.50%. As of January 2022, the rates of these central banks are 4.30% for the Hungarians and 3.75% for the Czechs.



In Western Europe, it was the central bank of Norway (Norges Bank) that raised the rates first. On September 23, Norges Bank decided to raise the deposit rate from 0.00% to 0.25%. This was followed by the Bank of England on December 16. The Bank of England interest rate was raised from 0.10% to 0.25%.

The US Federal Reserve (the Fed) closed the year 2021 by commenting that the Federal Fund rate would rise after the end of the QE program, which is scheduled for March 16, 2022. At that time, about 3 rate hikes were planned for 2022. However, after the recent inflation figures (December 7% yoy), the Fed gave a different signal and the markets are now forecasting 7 rate hikes in 2022.

Regarding the European Central Bank (ECB), interest rates still seem calm at the moment. ECB President Lagarde has hinted that the central bank is likely to buy bonds at a monthly rate of EUR 20 billion as early as the fourth quarter of 2022. In fact, this purchase program has no official end date. Importantly, as long as the ECB buys bonds, interest rate hikes are out of the question. So far, the ECB maintains its view that the current high inflation is temporary.

The influence of key rates

The change in the central banks’ strategy regarding their policy rates has a direct impact on short-term interest rates. Traditionally, short-term swap rates are very sensitive to the prospect of rate hikes or cuts. It is therefore no surprise that Czech and Hungarian short-term swaps have risen significantly. For example, the one-year Hungarian swap rose from 1.02% in May to 5.32% today. To a lesser extent, US and UK swap rates have also increased. On the contrary, the euro-zone 1-year swap rate was flat for much of 2021 and has only recently started to improve a bit.

The interest rate adjustments in the monetary policies of the various central banks have a major impact on the FX forward market when hedging foreign currencies against the EUR through an FX forward contract. The number of forward points increase significantly when one of the higher-yielding currencies is hedged against the EUR. For example, the number of forward pips for hedging USD against EUR for a 12-month period was 92 (0.0092) at the start of Q4. Due to increasing interest rate differentials between the US and the eurozone, this has risen to 165 (0.0165) at the end of January 2022. This represents an increase of 79%. Before hedging GBP against EUR, the number of pips also increased significantly. The number of forward pips on a 12-month hedge increased from 83 at the start of the fourth quarter to currently 133 forward pips, an increase of 60%.

The differences between the central bank’s interest rate policy have a significant impact on currency hedging through the use of forwards. The slow ECB action against the faster action of other central banks has led to a disadvantage for parties (exporters) which sell the foreign currency against the EUR in the future. On the other hand, parties (importers) which want to buy the foreign currency in the future have an advantage. They get more foreign currency for every EUR due to the high number of forward points (irrespective of the development of the spot rate). This situation may remain until central banks’ interest rate policy diverges to a lesser extent than they do now. This is not expected to be the case anytime soon.

A solution?

Good FX risk management can eliminate a large part of these Non-Core financial risks for companies. The first step is always identifying the different types of FX risks. The next step is neutralizing these risks on time with the right financial hedging instruments. A good cash flow forecast is essential for an adequate analysis.

FX risk management is often complex. Profound knowledge of the financial markets and available hedging instruments is essential for successfully protecting the company. Would you like to know more or are you interested in tailor-made treasury advice? Please contact the Treasury Desk.

 


Attend the 33rd Finance Symposium | 18-20 May 2022 | Mannheim

20-04-2022 | treasuryXL | LinkedIn |

 

The treasury and finance community finally meets in person again. treasuryXL is proud media partner of the 33rd Finance Symposium.

 

 

For more than 30 years, the Finance Symposium has developed into the most important industry gathering for treasurers and finance managers in the German-speaking world. Every year, around 2,300 finance experts meet to discuss together, make contacts and receive new impetus. The outstanding congress program offers visitors a broad spectrum of professionally challenging topics from finance and treasury management in three days. In over 170 forums, workshops and expert panels, participants will learn about the latest developments in finance and treasury.

 

 

The speakers are high-ranking finance managers from major companies and prominent guests from politics and business. For example, in 2022 Martin Schulz, former President of the European Parliament , and Verena Pausder, entrepreneur and expert in digital education, could be won for exciting presentations and discussions. The most important banks, system providers and financial service providers in the industry will present themselves on 1,000 m2 of exhibition space.

For more information and tickets, visit: www.finanzsymposium.com

 

 

 

Director, Community & Partners at treasuryXL

 

 

 

 

Your free eBook, What is Treasury?

13-04-2022 | treasuryXL | LinkedIn |

 

Receive your eBook What is Treasury? after subscribing to the free treasuryXL weekly newsletter.

The world of Treasury is a complex topic. Many people will think about pirates and big see ships that sank deep into the bottom of the ocean including their ‘treasure’. A mystery treasure map will lead the finder to a treasure worth a lot of money. In some way Treasury and Treasure have similarities, it is about money and other valuables.

Are you having a hard time how to explain what treasury is to family, friends and colleagues? Or are you interested to learn more about the World of Treasury?

 

treasuryXL created a 41 pages eBook for the corporate treasurers and the world of finance addict.

This eBook is designed to answer layman questions about the function of Treasury. treasuryXL bundled the most important information for you and created an easy to read and understand articles about the main subjects within the World of Treasury:

This ebook will answer your questions about Treasury topics.

treasuryXL explains the purpose of each Treasury function; what specialists do, examples of activities, FAQs, and a summary.

This ebook is based on the most relevant best practices that Treasury experts provided over the last years. On the website of treasuryXL you can explore additional information on the latest in Corporate Treasury.

 

HAVE FUN READING!

 

 

Director, Community & Partners at treasuryXL