The Global Transaction Services business at Bank of America Merrill Lynch has published the report, Strategic Treasury for Latin America 2013, which currently appears in Treasury Management International (TMI) magazine. The report, which is produced annually, identifies the opportunities, challenges and market variations that companies may encounter when doing business in the region.
“To outside companies looking to expand internationally, Latin America is a land of opportunity,” states Juan Pablo Cuevas, head of Global Transaction Services for Latin American and the Caribbean, in the introduction of the report. Cuevas explains that despite recent events in Brazil, “by and large, the political instability that was once inherent in the region has given way to longer-term governments and longer-term planning as the region’s economies continue to grow.”
Strategic Treasury for Latin America 2013, which is available to BofA Merrill clients and through TMI, features articles on wide-ranging treasury and transaction services issues, including:
- The most attractive opportunities for trade and investment in Latin America.
- The most suitable countries for establishing shared service centers.
- Implications of the Pacific Alliance and the Integrated Latin America Market (MILA).
- How treasurers can more effectively leverage their technology, including mobile.
- The advantage for treasury departments to work with a banking provider that can relay real-time information on their cash and securities exposures.
- How treasurers can optimize liquidity management in the region.
- Best practices on the part of Latin America companies to allocate at least a portion of their liquidity to USD-denominated products.
- How the conditions in Latin America are ripe for more widespread use of commercial cards.
- How multinationals, eager to take advantage of the opportunities in Brazil and Mexico, are seeking to increase investment and activity in both countries.
In the article, “Navigating Latin America’s Liquidity Landscape,” the bank provides country-by-country profiles on liquidity conditions. Mexico is noted for being more liberal where liquidity management is concerned, while Chile is singled out as “an attractive business location for international corporations in light of its investment grade credit rating and stable democratic government.”