Trésorier/Treasurer magazine - N°99 - Nov/Dec/Jan 2018 - 38

Whilst the detention of Deutsche
Marks was mostly declining, the
appearance of the Euro gave a "kick-

But	
   structural	
  in-the-pants"
changes	
   in	
  push
international	
  
currencies	
   must	
   be	
   observed	
   over	
   a	
   longer	
   history.	
  That	
   history	
   proves	
   the	
  
to the European
inertia	
  of	
  the	
  game.	
  The	
  guilder	
  dominated	
  markets	
  for	
  close	
  to	
  two	
  centuries,	
  the	
  sterling	
  for	
  one	
  century,	
  and	
  the	
  
currency representation
dollar	
   will	
   be	
   closing	
   a	
   century	
   in	
   2031.	
   The	
   changes	
   in	
   regimes	
   have	
   been	
   rhythmed	
   by	
   wars	
   and	
   swaps	
   in	
  
geopolitical	
  powers.	
  
	
  
Figure	
  2	
  shows	
  the	
  rapid	
  evolution	
  of	
  the	
  absolute	
  level	
  of	
  U.S.	
  dollar	
  foreign	
  currency	
  reserves,	
  accelerating	
  after	
  
the	
  end	
  of	
  Bretton	
  Woods	
  system.	
  The	
  QE	
  programme,	
  the	
  instability	
  of	
  some	
  emerging	
  markets,	
  the	
  dollarization	
  of	
  
South	
  American	
  countries,	
  and	
  the	
  bigger	
  use	
  of	
  reference	
  currencies	
  that	
  are	
  not	
  necessarily	
  the	
  domestic	
  currency	
  
but	
  the	
  USD	
  for	
  big	
  multinationals,	
  have	
  certainly	
  helped	
  fuel	
  this	
  evolution.	
  It	
  certainly	
  raises	
  concerns	
  on	
  its	
  link	
  
with	
  the	
  dependence	
  of	
  the	
  evolution	
  of	
  financial	
  markets	
  on	
  these	
  quantities.	
  
	
  
For	
  the	
  Euro,	
  it	
  took	
  only	
  9	
  years	
  to	
  be	
  at	
  the	
  same	
  level	
  that	
  the	
  dollar	
  had	
  by	
  the	
  beginning	
  of	
  the	
  21st	
  century.	
  
Figure	
   1	
   also	
   provides	
   a	
   good	
   support	
   to	
   economists	
   advocating	
   for	
   the	
   Euro.	
   Whilst	
   the	
   detention	
   of	
   Deutsche	
  
Marks	
  was	
  mostly	
  declining,	
  the	
  appearance	
  of	
  the	
  Euro	
  gave	
  a	
  "kick--‐in--‐the--‐pants"	
  push	
  to	
  the	
  European	
  currency	
  
representation.	
   This	
   must	
   be	
   therefore	
   due	
   to	
   reasons	
   other	
   than	
   just	
   the	
   need	
   to	
   have	
   a	
   European	
   financial	
  
denomination	
  since	
  for	
  financial	
  engineers,	
  when	
  a	
  European	
  currency	
  series	
  starting	
  before	
  the	
  inception	
  of	
  EUR	
  is	
  
needed,	
  DEM	
  is	
  used	
  as	
  the	
  proxy	
  anyhow.	
  
	
  
	
  
FIGURE 2 : EVOLUTION OF FOREIGN RESERVE CLAIMS IN U.S DOLLARS AND EUROS (IN BILLIONS)
Figure  2:	
  Evolution	
  of	
  Foreign	
  Reserve	
  Claims	
  in	
  U.S.	
  dollars	
  and	
  Euros	
  (in	
  billions)	
  

- NOV /

6'000

5'000

N°99

DEC / JAN 2018

7'000

4'000

USD

-

3'000

EUR

Source: own chart, based on COFER IMF Data

2017Q2

2016

2017Q1

2015

2014

2013

2012

2011

2010

2009

2008

2007

2006

2005

2004

2003

2002

2001

2000

1999

1998

1997

1996

1995

1994

1993

1992

1991

'0

1990

1'000

1989

LE MAGAZINE DU TRESORIER / TREASURER MAGAZINE

2'000

	
  
	
  
	
  
some emerging markets, the dollarization of South American
But structural changes in international currencies must be
Next,	
  it	
  is	
  interesting	
  to	
  compare	
  these	
  numbers,	
  which	
  refer	
  to	
  reservoirs	
  of	
  foreign	
  currencies	
  at	
  central	
  banks,	
  to	
  
countries, and the bigger use of reference currencies that
observed over a longer history. That history proves the inertia
the	
  dynamic	
  use	
  of	
  currencies	
  in	
  financial	
  markets.	
  For	
  that,	
  we	
  have	
  to	
  take	
  a	
  look	
  at	
  what	
  the	
  Bank	
  of	
  International	
  
are not necessarily the domestic currency but the USD for big
of the game. The guilder dominated markets for close to two
Settlements	
  centuries,
(BIS)	
   in	
   Basle	
  
has	
  for
to	
  one
say.	
  
Its	
   latest	
  
triennial	
  
central	
  
bank	
  
survey	
   of	
  have
December	
  
2016	
   is	
  
summarized	
  
multinationals,
certainly helped
fuel
this evolution.in	
  
It
the sterling
century,
and the
dollar will
be
Figure	
  3.	
  We	
  can	
  find	
  out	
  for	
  example	
  that	
  the	
  Swiss	
  franc,	
  which	
  represents	
  0.17%	
  of	
  foreign	
  currency	
  reserves,	
  is	
  
certainly raises concerns on its link with the dependence of
closing a century in 2031. The changes in regimes have been
the evolution
of financial
markets
on theseon	
  
quantities.
rhythmed
by wars
and swaps
in geopolitical
powers.
present	
   in	
   4--‐6%	
  
of	
   all	
  
currency	
  
pairs	
  
traded.	
   Thus,	
  
you	
   might	
   have	
  
a	
   different	
  
picture	
  
depending	
  
what	
   you	
  
For the the	
  
Euro,Renminbi	
  
it took only is	
  
9 years
be at theas	
  
same
level that
compare	
   the	
   currencies	
   for.	
   What	
   is	
   also	
   striking	
   is	
   that,	
   even	
   though	
  
not	
   to
"stored"	
  
a	
   foreign	
  
th of the absolute level of U.S.
the dollar had by the beginning of the 21st century. Figure 1
Figure 2 shows the rapid evolution
currency	
  reserve,	
  it	
  has	
  become	
  the	
  8 	
  traded	
  currency	
  with	
  4%	
  of	
  the	
  deals,	
  whilst	
  it	
  was	
  nowhere	
  to	
  be	
  seen	
  15	
  
also provides a good support to economists advocating for
dollar foreign currency reserves, accelerating after the end of
years	
  ago.	
  There	
  
are	
  obvious	
  reasons	
  and	
  circumstances	
  that	
  helped	
  
over	
  that	
  term,	
  but	
  there	
  is	
  a	
  clear	
  acceleration	
  
the Euro.
Bretton Woods system. The QE programme, the instability of
over	
   the	
   last	
   5	
   years.	
   This	
   suggests	
   interesting	
   analytical	
   questions	
   like	
   "how	
   much	
   trading	
   in	
   financial	
   markets	
  
influences	
  
38 the	
  detention	
  of	
  currencies	
  in	
  foreign	
  reserves?",	
  etc....	
  	
  
	
  



Table des matières de la publication Trésorier/Treasurer magazine - N°99 - Nov/Dec/Jan 2018

COUVERTURE
SOMMAIRE
EDITORIAL
FINANCIAL HIGHLIGHTS Luxembourg Tax News
INTERVIEW with Dick Oskam, Head of Sales for Transaction at ING
FOCUS
Value generation - How to create (more) value for the company with a better capital allocation
Managing bank accounts, the Cinderella of treasury management
Treasury on the Digital Front Line
FORUM
Implementation of EU Tax Rules
Innovative payments solution
Construction de portefeuille : combiner gestion active et passive
Decision Time: Investing in Money Funds after EU Reforms
Payments as a Strategy
Are asia’s corporates ready to repo?
The evolving role of treasurers
THE FINANCIAL RISK OBSERVATORY
NEWS
LIFE BEYOND NUMBERS
Trésorier/Treasurer magazine - N°99 - Nov/Dec/Jan 2018 - COUVERTURE
Trésorier/Treasurer magazine - N°99 - Nov/Dec/Jan 2018 - 2
Trésorier/Treasurer magazine - N°99 - Nov/Dec/Jan 2018 - SOMMAIRE
Trésorier/Treasurer magazine - N°99 - Nov/Dec/Jan 2018 - 4
Trésorier/Treasurer magazine - N°99 - Nov/Dec/Jan 2018 - EDITORIAL
Trésorier/Treasurer magazine - N°99 - Nov/Dec/Jan 2018 - FINANCIAL HIGHLIGHTS Luxembourg Tax News
Trésorier/Treasurer magazine - N°99 - Nov/Dec/Jan 2018 - 7
Trésorier/Treasurer magazine - N°99 - Nov/Dec/Jan 2018 - INTERVIEW with Dick Oskam, Head of Sales for Transaction at ING
Trésorier/Treasurer magazine - N°99 - Nov/Dec/Jan 2018 - 9
Trésorier/Treasurer magazine - N°99 - Nov/Dec/Jan 2018 - Value generation - How to create (more) value for the company with a better capital allocation
Trésorier/Treasurer magazine - N°99 - Nov/Dec/Jan 2018 - 11
Trésorier/Treasurer magazine - N°99 - Nov/Dec/Jan 2018 - 12
Trésorier/Treasurer magazine - N°99 - Nov/Dec/Jan 2018 - 13
Trésorier/Treasurer magazine - N°99 - Nov/Dec/Jan 2018 - Managing bank accounts, the Cinderella of treasury management
Trésorier/Treasurer magazine - N°99 - Nov/Dec/Jan 2018 - 15
Trésorier/Treasurer magazine - N°99 - Nov/Dec/Jan 2018 - 16
Trésorier/Treasurer magazine - N°99 - Nov/Dec/Jan 2018 - 17
Trésorier/Treasurer magazine - N°99 - Nov/Dec/Jan 2018 - 18
Trésorier/Treasurer magazine - N°99 - Nov/Dec/Jan 2018 - Treasury on the Digital Front Line
Trésorier/Treasurer magazine - N°99 - Nov/Dec/Jan 2018 - 20
Trésorier/Treasurer magazine - N°99 - Nov/Dec/Jan 2018 - 21
Trésorier/Treasurer magazine - N°99 - Nov/Dec/Jan 2018 - Implementation of EU Tax Rules
Trésorier/Treasurer magazine - N°99 - Nov/Dec/Jan 2018 - 23
Trésorier/Treasurer magazine - N°99 - Nov/Dec/Jan 2018 - Innovative payments solution
Trésorier/Treasurer magazine - N°99 - Nov/Dec/Jan 2018 - 25
Trésorier/Treasurer magazine - N°99 - Nov/Dec/Jan 2018 - Construction de portefeuille : combiner gestion active et passive
Trésorier/Treasurer magazine - N°99 - Nov/Dec/Jan 2018 - 27
Trésorier/Treasurer magazine - N°99 - Nov/Dec/Jan 2018 - Decision Time: Investing in Money Funds after EU Reforms
Trésorier/Treasurer magazine - N°99 - Nov/Dec/Jan 2018 - 29
Trésorier/Treasurer magazine - N°99 - Nov/Dec/Jan 2018 - Payments as a Strategy
Trésorier/Treasurer magazine - N°99 - Nov/Dec/Jan 2018 - 31
Trésorier/Treasurer magazine - N°99 - Nov/Dec/Jan 2018 - Are asia’s corporates ready to repo?
Trésorier/Treasurer magazine - N°99 - Nov/Dec/Jan 2018 - 33
Trésorier/Treasurer magazine - N°99 - Nov/Dec/Jan 2018 - The evolving role of treasurers
Trésorier/Treasurer magazine - N°99 - Nov/Dec/Jan 2018 - 35
Trésorier/Treasurer magazine - N°99 - Nov/Dec/Jan 2018 - 36
Trésorier/Treasurer magazine - N°99 - Nov/Dec/Jan 2018 - THE FINANCIAL RISK OBSERVATORY
Trésorier/Treasurer magazine - N°99 - Nov/Dec/Jan 2018 - 38
Trésorier/Treasurer magazine - N°99 - Nov/Dec/Jan 2018 - 39
Trésorier/Treasurer magazine - N°99 - Nov/Dec/Jan 2018 - 40
Trésorier/Treasurer magazine - N°99 - Nov/Dec/Jan 2018 - NEWS
Trésorier/Treasurer magazine - N°99 - Nov/Dec/Jan 2018 - 42
Trésorier/Treasurer magazine - N°99 - Nov/Dec/Jan 2018 - 43
Trésorier/Treasurer magazine - N°99 - Nov/Dec/Jan 2018 - 44
Trésorier/Treasurer magazine - N°99 - Nov/Dec/Jan 2018 - 45
Trésorier/Treasurer magazine - N°99 - Nov/Dec/Jan 2018 - 46
Trésorier/Treasurer magazine - N°99 - Nov/Dec/Jan 2018 - 47
Trésorier/Treasurer magazine - N°99 - Nov/Dec/Jan 2018 - 48
Trésorier/Treasurer magazine - N°99 - Nov/Dec/Jan 2018 - 49
Trésorier/Treasurer magazine - N°99 - Nov/Dec/Jan 2018 - 50
Trésorier/Treasurer magazine - N°99 - Nov/Dec/Jan 2018 - 51
Trésorier/Treasurer magazine - N°99 - Nov/Dec/Jan 2018 - 52
Trésorier/Treasurer magazine - N°99 - Nov/Dec/Jan 2018 - LIFE BEYOND NUMBERS
Trésorier/Treasurer magazine - N°99 - Nov/Dec/Jan 2018 - 54
Trésorier/Treasurer magazine - N°99 - Nov/Dec/Jan 2018 - 55
Trésorier/Treasurer magazine - N°99 - Nov/Dec/Jan 2018 - 56
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