Given rising prices combined with the credit crunch and the subsequent liquidity crisis, it is little wonder that cash management has risen up the agenda as much for individual households as for multi-nationals.
As Mervyn King, Governor of the Bank of England, recently warned, the threat of inflation and an economic downturn has signalled the end of the NICE era (non-inflationary constant expansion) and instead we may be heading for prices increases and growth slowing (is there an acronym in that?).
In these difficult times banks and treasurers must be able to prove their worth. Multi-nationals are already dealing with complex cash management issues such as sharp fluctuations in cashflows and increased risk posed by volatile exchange rates. And a deteriorating global economic outlook is going to require strong management to maintain the corporate grip on the issues.
While there are no easy solutions, this third edition of The Treasurer’s Cash Management supplement explores some of the key tools which treasurers have at their disposal to maintain control. The intelligent use of technology is clearly a must for any organisation today but there should be a constant reassessment of how to squeeze better value from its investment in technology while still keeping a firm eye on the cash management fundamental, to ensure that in difficult times cash management policies help to add value rather than destroy it.
PETER WILLIAMS
Editor
