The Fed isn’t likely to push U.S. rates below zero, but treasurers of multinationals still have to cope with negative rates overseas.
While treasurers have been dealing with low interest rates for years, they’re now facing negative rates on bank deposits in some parts of the world. The prospect of paying a bank to hold company funds has an Alice in Wonderland feel to it, but central banks in a number of countries have implemented monetary policies that charge negative rates on the deposits that banks hold with the central banks. Banks in turn are passing those negative rates on to commercial depositors.
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