Bilateral netting

Bilateral netting is the consolidation of all scheduled payments between two counterparties, with only the net difference being paid. This greatly reduces the amount of foreign exchange flows between two parties, thereby reducing foreign exchange transaction fees and risks. The concept works best when all payments and receivables generated within an entity are centralized, so that the information can be more easily aggregated.

Related Courses

Corporate Cash Management 
Payables Management 
Treasurer's Guidebook