Local currency treasury matching

A bank that wants to serve visitors, students, workers or small businesses in another market needs to hold that market’s currency, or to settle in it, without converting through a third currency at each step. Matching the banks that hold the currency with the banks that need it is the work that makes the corridor economic.

What the work covers

• Assessing the collective demand of a syndicate for a currency, by corridor and by segment.
• Identifying sponsor banks in the destination market with the position and the appetite to share their retail infrastructure.
• Arranging the counterparty positions that let member banks hold and settle in each other’s currencies, in both directions.
• Structuring settlement windows and limits that fit the schemes each market uses, from instant payment rails to batch settlement.
• Supporting the negotiation of one set of terms for the whole syndicate.

Where the work stops

Treasury matching is arrangement. The local program provider does not take positions, hold funds or settle transactions. Every position is held, and every settlement is performed, by a licensed bank under its own permissions.