Local-currency treasury matching

A corridor only works when both sides have a use for the other’s currency. A bank with strong inbound demand for one currency and no outbound need for it will not sustain a position. Matching is the work of finding, across the network, the counterparties whose flows offset each other.

What the work covers

• Assessing the currency demand and supply profile of each member bank: which corridors it draws on, in what direction, at what expected volume.
• Identifying counterparties elsewhere in the network whose position is complementary, so both sides carry a workable balance rather than one accumulating exposure.
• Arranging the introduction and supporting the two banks through the commercial terms of their direct agreement.
• Advising on the operational parameters that the two institutions set between themselves: limits, thresholds, reconciliation cadence and settlement timing.
• Monitoring corridor balance over time and identifying when an additional counterparty is needed to keep a corridor stable.

Where the position sits

The local program provider arranges and advises. It does not quote, buy, sell or convert currency on its own account, does not take a position in any currency, and does not hold, receive or settle funds. The treasury position belongs to the two licensed banks, held under their own permissions and their own risk limits.