Government cash management is about the strategy and associated processes for managing cost-effectively the government's short-term cash flows and cash balances, both within government, and between government and other sectors. The main objectives of efficient government cash management are therefore keeping to a minimum the volume of idle balances held in the banking system and the extra costs associated with that, reducing operational, credit and market risk, and adding flexibility to the ways in which the timing of government cash inflows and outflows can be matched. Cash management normally entails the necessity for an effective collaboration between the sovereign debt manager and the central bank.