ZF TRW, a division of ZF Friedrichshafen, manufacturers of automobile safety systems, has implemented the working capital solution and is serving as the pilot client.
The BAML service was created to take advantage of the cross-border pooling scheme policy liberalisation announced by China’s State Administration of Foreign Exchange, which allowed wider cross-border use of funds sourced both on and offshore, and an increased quota for net inflows.
US dollar cross-border cash pooling can assist companies operating in China by better addressing working capital requirements with on and offshore surplus funds. The BAML service allows for US dollar payments and collections centralisation, and netting arrangements. It also allows corporate entities in China to operate more in line with their global enterprise cash management practices by reducing cross-border payment fees, building efficiencies in cross-border settlement, and standardising processing flows.
The US dollar cross-border cash pooling solution is supported by BAML’s Global Liquidity Platform, which allows corporates in China to access automated balance-sweeping functionalities, supports lending and borrowing quotas, and enables regulatory reporting across multiple jurisdictions.
In 2014, BAML launched US dollar and RMB cross-border cash pooling facilities to help companies integrate the cash generated onshore into their global liquidity structures. The paperless cross-border payment solution was intended to help clients improve payment efficiency and centralise payments.
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