Global cash management

Liquidity Management

Tools for centralizing control of decentralized cash around the world.

Liquidity Management

Tools for centralizing control of decentralized cash around the world

PSS’s cash pooling is a liquidity management technique for companies to manage the group’s changing global liquidity positions on a multiple currency and entity basis. The cash pooling solution can be achieved through notional or physical pooling where in both cases the need to perform FX and/or swap transactions is eliminated.

PSS’s service

After centralizing the global varying cash surplus and deficit positions of the world-wide group companies, PSS’s cash pooling program offsets credit and debit balances on a multiple currency basis without converting currencies. This results in a total consolidated cash position which is used to apply proper interest conditions to all of the cash pool account balances. PSS reallocates the cash pool interest margins, which effectively is an inter-company margin, to its customers on compensated balances in the cash pool. Internet reporting of all of the account positions is made available daily after which a single money market investment or borrowing in a single currency results in a zero balanced cash position.

Added values

PSS’s customers find the notional cash pooling attractive by virtue of its simplicity and effectiveness to mitigate the cost of fluctuating account balances and capturing the well-known interest spread. PSS’s cash pooling program combines well with inter-company financing requirements, investment and borrowing needs, growth resulting from overseas acquisitions, payment systems, treasury management systems and much more. The treasury center cash pooling function allows you to make account consolidations. You determine the pooling parameter (such as the base amount or minimum value) individually for each account and receive a pooling recommendation with the corresponding payment data for your account. To optimize the cash management of your various accounts, either by transferring money to accounts with a negative balance in order to avoid high interest charges, or by transferring funds to a single account, cash pooling will serve you better.


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