On Modernization of Treasury Cash Management

The management system of treasury cash in developed countries includes single account, sorted account and normalization of sorted financial balance, operated with an advanced information-processing system. However, the present treasury cash in China is separately managed with multiple accounting by budgeting units and levying authorities, which decentralizes financial resources and delays informational construction of treasury management. Therefore, we should establish a treasury cash prediction system and treasury equilibrium fund, improve regulations of treasury debt issuance, and exclude any impact on the efficiency of treasury utilization so as to better the coordination of treasury cash operation with monetary policies of the Central Bank.