Treasury and Investment Management

Know Your Position: The Ins and Outs of Cash Positioning

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How much is in your bank account right now? Cash position is the quantity of cash that a company is holding at a given point in time, so by extension, cash positioning is the calculation of the net inflows and outflows of cash that add to or use the existing cash sources that a government holds. This is a fundamental responsibility of a treasury team or cash manager. Cash positioning is necessary because the daily flow of funds into an organization rarely matches the outflows and requires coordinating actions—cash management—to ensure that financial obligations are met in a timely manner. Basic cash management comprises two parts: bank polling and cash positioning.

  • Publication date: April 2024
  • Author: Tony Vu