Centralised Treasury is the system of financial management used by international companies with subsidiaries, in which funding activities, investment and foreign exchange decisions are made not by local treasurers but by one centrally located treasury team. Supporters argue that centralised treasury operations enhance cash-flow visibility, optimises liquidity across the organisations, increases efficiency by reducing redundancies, and allows for more effective risk management. From a foreign exchange risk management perspective, the main argument in favour of centralised treasury is that it enhances exposure netting possibilities, thereby allowing the firm to avoid unnecessary hedging. Detractors of centralised treasury argue that it results in the loss of valuable local knowledge that only local treasurers can take advantage of.