TREASURY FOREX
Merchant West provides sophisticated treasury and risk management solutions to the private and public sector. Because of our hands-on approach and independent stance, we are able to add significant value to our client’s business, as well as a high degree of specialisation and treasury forex management systems.
To optimise the treasury forex and risk management function in business, you need the right partner. To find the right partner you need to ask the right questions:
- What value could my partner bring to my business?
- Do they have the intellectual capacity to really optimise my treasury and risk management function?
- Would they transfer the desired specialised skills to my business?
- Can they provide the necessary market-leading technology and systems?
- Is intellectual honesty present in facets of the service offering?
- Are they independent from my existing financial institution?
Merchant West can assist in supplying the skills to keep management close to the market (thereby facilitating well informed decision-making), as well as the development of any required policy. With a clear mandate and specific parameters in line with the business’s risk policy, the right Treasury Partner should provide clear communication, well-documented procedures, efficient processing with performance based benchmarks, and timeous critical information to inform decision-making which would optimise treasury and risk management capabilities.
Characteristics of the right Treasury Partner
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Independence – your partner should not receive a fee benefit for delivering deals to a particular institution and they should not deal as principal in the markets. Merchant West Treasury is completely independent of all banks.
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Value-add – your partner should transfer specialist corporate treasury skills to your business. Merchant West Treasury secures the most aggressive money market and foreign currency rates.
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Ability – your partner should assist in the production of policy; originate strategies suited to your risk profile; assist each business unit independently without adding incremental risk to the whole business; integrate fully with the business, providing a customized service with measurable performance.
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Effective Foreign Currency Risk Management - One of the few certainties in the current economic climate is that exchange rates will remain volatile. The consequence of this is that companies should be more conscious of their vulnerability to losses arising from these movements. Currency / foreign exchange risk can broadly be defined as the monetary loss that a company may suffer, expressed in a base currency, as a result of changes in foreign exchange rates. Merchant West Treasury manages foreign exchange exposure in order to limit monetary losses.
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Risk sharing - Merchant West can assume risk with clients.
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Risk Reporting – Merchant West clients have access to a secure, web-based risk reporting system that assists in making timeous decisions relating to Foreign Exchange and Liquidity Risk. Management and data reports are also accessible immediately from anywhere in the world.
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Corporate Cash Management (“CCM”)
CCM is a cash investment opportunity for Corporate and private individuals. It is a competitive and effective internet-based money management system that provides a secure environment in which to transact on behalf of clients. This product includes Call Accounts with immediate access at competitive rates, as well as Term Deposits with flexibly to fix from 2 to 365 days.
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