Cross-currency sweeps let customers that have funds in different currency accounts concentrate their funds in their base currency. This tool can be especially useful when it comes to assisting customers with minimizing their exposure to foreign exchange (FX) volatility in addition to negative interest rate-bearing currencies, according to the announcement.
“The launch of cross-currency sweeps is an example of how we’re building technology-driven automated solutions to address the cash and liquidity management needs of our clients,” Greg Malosh, Global Liquidity product head for BNY Mellon Treasury Services, said in the announcement. “This marks the first in a series of improvements we’re implementing over the course of the next year to deliver a full range of sophisticated and intelligent solutions, and we are excited to continue to increase our array of offerings as demand grows for liquidity services.”
Liquidity management tools such as cross-currency sweeps digitize a process that took much time and many resources for corporate treasurers and their cash management workforces. Customers who don’t have access to those kinds of tools have to move funds to accounts in their base currency from noncore currency accounts on their own. Such a move necessitates nonautomated effort and possibly adds market risk into the treasury and cash management functions.
“As businesses continue to adopt a digital mindset and seek solutions to improve efficiencies in a global marketplace, we are working to anticipate those needs with products and services that appeal to a broader spectrum of client segments, backed by the strong credit rating and trusted reputation of BNY Mellon,” Paul Camp, CEO of Treasury Services at BNY Mellon, said in the announcement.