27 February 2024

TCOP Cash Management Thematic Group Meeting


TCOP Thematic Group on Cash Management held its meeting on February 27, 2024. The objective of the session was to revisit the topic of cash buffers. COVID pandemic drew attention of governments across the world to liquidity risks and highlighted the importance of having a financing continuity plan, one element of which is maintaining a cash buffer. The main item on the agenda of the meeting was the presentation titled “The Target Cash Buffer: Its Importance, Implementation and Calculation”. It covered the types and structure of cash buffers, methods for determining their size, practical issues associated with their implementation. The presentation took around one hour and about the same time was devoted to questions and answers and sharing experiences from participating countries. The background material for the session was the recent note on how to set up a cash buffer produced by the IMF.