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International cash management is a field that helps smooth the process of moving money between countries. The cash manager is responsible for opening local currency accounts within the areas of interest and moving the necessary money in and out of foreign countries. This requires the manager to understand the intricacies of local and international banking laws that apply to any country where the company has money. Also, international cash management systems work with people from different countries using the same financial system, such as when a bank operates in multiple countries.
Cash management is a field that has gained prominence in the 21st century. Most aspects of cash management existed before then, but the need for a dedicated department to handle them was rarely a necessity. With improvements in the speed and reliability of communication and data networks around the world, the demand for faster, more informed people has become a priority.
Most cash management revolves around business accounts. For an individual, services are available in smaller formats at most banks; only a person who constantly needed to move large sums of their own money would need something more extensive. In the field of business, cash management is very much like a very advanced form of bank account. The systems involved are the same (checking, savings, and money transfers), but the scope is much broader. The accounts handle much larger sums than many banks are comfortable with.
When the process involves banking operations in other countries, it becomes international cash management. Along with standard tasks, an international manager must work with money from other countries in addition to his country’s currency. When two countries have different banking procedures, the administrator will negotiate the terms to keep the accounts safe and stable for use in both countries. In addition, the manager will maintain control over the value and use of local currencies to ensure company money is spent properly.
Along with the commercial area, international cash management also describes the systems used by institutions that handle money in different countries. This form of treasury management applies to both natural and legal persons, since it is part of the institution’s services. Most international cash management systems are operated by banks with a presence in multiple countries. These systems range from automated teller machines (ATMs) that dispense local cash to tellers that can issue local bank checks in exchange for foreign checks.