Citibank offers multi-currency notional pooling

Citibank (China) Co Ltd has launched a multi-currency notional pooling with RMB capability, making it the first bank in China to offer such a tool.

Yigen Pei, country head of its transaction services for China, said on Monday the leading cash management tool would significantly enhance the efficiency of clients' liquidity management.

"The introduction of RMB capability further underlines the importance of RMB as a strategic currency in treasury management and should also help promote Shanghai's position as an international financial center," Pei said.

Widely used at international financial centers such as London and Singapore, multi-currency notional pooling is often adopted by corporate treasury centers to efficiently manage cash flow from a centralized location.

The solution can also help corporates manage cash in multiple currencies as a single position without altering foreign exchange exposures or having to perform foreign exchange swaps, Citi said in a statement.

With multi-currency notional pooling, each account retains autonomy within the pool. The currency and account type of balances do not change and balances in different currencies are not co-mingled, but notionally aggregated.