How Dover Improved Treasury

The manufacturing company realized big savings by centralizing FX trading and rationalizing the use of banking services.

The treasury department at Dover Corp., a diversified manufacturing company, has spent the past couple of years centralizing foreign exchange (FX) trading and rationalizing its number of bank accounts and its use of banking services. The results are noteworthy.

“Between the things that we’ve done on the bank account side and on the currency side, we’ve saved a significant amount of money,” said Brian Moore, treasurer and vice president at Dover. “And we’ve done that without sacrificing internal controls or increasing risk. In fact, we’ve instituted some foreign currency hedging programs that have helped reduce Dover’s risk profile.”

Consolidation and Netting for Foreign Exchange

Brian Moore, Dover Corp.The interviews with the operating companies also looked at their foreign exchange transactions. “We wanted to get an aggregate amount of currency flows that were occurring for all of our operating companies worldwide,” said Moore, pictured at right, noting that treasury was looking at the potential risks of those flows and also assessing whether there was a way to improve the company’s foreign exchange transactions.

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