One of the role of Treasury is to ensure the right quantum of cash/liquidity to hold. So what really is the right quantum of cash to hold? The obvious answer would simply be the amount needed to pay today’s debt which is aided by deploying advanced technology like money wires, electronic wire transfer/computerization to pay the debt on time.

It is vital that the objectives of Treasury paying the company’s debt on time are achieved so as to achieve the following :

• to become a valued customer to the vendors;
• smooth product flows;
• a competitive advantage;
• reputation for honesty and
• good credit rating

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