The 7^th webinar of the Public Debt Management Network brought together international experts to explore the evolving landscape of sovereign cash management. While debt management practices have become increasingly harmonized across countries, cash management remains a more diverse and context-dependent field. This session examined how different countries define liquidity, manage cash buffers, and adapt to shifting financial and policy environments, including the aftermath of the COVID-19 pandemic and changes in monetary policy.

Moderated by Pietrangelo De Biase, Policy Analyst at the OECD, the webinar featured insights from Vincent Butler (Ireland), Gustavo Miguel Nogueira Fleury (Brazil), and Alessandro Iacono (Italy), each of whom shared their country’s recent experiences and innovations in managing government cash.

Vincent Butler, Head of the Cash Desk at Ireland’s National Treasury Management Agency, opened the discussion by outlining the core objective of cash management: to ensure that sovereign cash needs are met while maintaining investor confidence. He emphasized that there is no one-size-fits-all model, as practices vary significantly depending on local institutional arrangements, market depth, and risk appetite. In Ireland, cash flow forecasting plays a central role in informing funding and investment decisions. Liquidity targets are shaped by access to short-term markets and the volatility of funding needs. He also reviewed the range of instruments used, from treasury bills and repos to central bank deposits and reverse repos.

Gustavo Fleury, Head of the Financial Programming Data Analysis Unit at Brazil’s National Treasury, presented Brazil’s approach, which is characterized by a high cash balance held in a Treasury Single Account (TSA). This buffer provides flexibility and helps mitigate short-term liquidity risks. The pandemic prompted Brazil to strengthen its forecasting and cash management frameworks, leading to the creation of a Cash Monitoring and Analysis Subcommittee in 2023. Fleury described the development of a new forecasting model that projects daily cash flows over a three-month horizon, integrating both fiscal and debt-related data. He also highlighted the importance of institutional coordination between the Debt Management and Financial Administration Offices.

Alessandro Iacono, Head of Short-Term Funding and Cash Management Operations at Italy’s Treasury Department, detailed the transformation of Italy’s cash management strategy since 2020. In response to increased volatility and market fragmentation, Italy introduced a suite of new tools, including repo and reverse repo operations, unsecured deposits, and a more flexible T-bill issuance strategy. These innovations were supported by the adoption of electronic trading platforms and straight-through processing, which enhanced operational efficiency. Iacono also noted the reduction of cash buffers and the implementation of a more robust risk framework to support activity in unsecured markets.

The Q&A session addressed several cross-cutting themes. Participants discussed the potential role of artificial intelligence in cash management, with all speakers noting that while AI is being monitored, it has not yet been integrated into forecasting models. The use of repo operations also drew attention: Italy actively engages in both repos and reverse repos, while Ireland does not currently use these instruments. On the topic of foreign currency management, Ireland and Italy reported converting or swapping foreign currency to euros to avoid exchange rate risk, whereas Brazil limits foreign currency operations to debt management purposes.

The webinar concluded with a reflection on the diversity and innovation shaping sovereign cash management today. Speakers underscored the importance of flexibility, institutional coordination, and advanced forecasting tools in navigating an increasingly complex fiscal and financial environment.

To explore more on OECD country practices, see the OECD Report on Managing Government Cash.

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