Glossary

Multi-currency notional pooling consists in creating a master account with a bank in order to offset balances in different currencies and optimise cash and liquidity management. Companies with subsidiaries in different countries can implement multi-currency notional pooling strategies due to their efficiency as a method to manage multi‑currency balances. The advantages include: – A single liquidity position to address most cash-management issues. – Minimal cash transfer fees, as transfers between accounts are minimised. – Reduced foreign-exchange transactions: offsetting credit and debit balances through a multi-currency balance, the pool minimises the need for FX transactions and their costs.