This is the second of a two-part article series

In this second instalment of our two-part article series, we continue exploring the critical statistics that corporate treasury executives need to know to excel in their roles this year. Building on the data-driven information shared in Part 1, we’ve gathered and highlighted 13 additional key statistics—on top of the 12 covered in Part 1—from notable 2024 survey reports and trusted sources.

We trust that corporate treasury professionals will find value in this data-focused article series, enabling them to prepare effectively and proactively to face a complex operating environment in 2025.

Cash forecasting

• According to the 2024 Treasury Perspectives Survey Report, produced by Strategic Treasurer and underwritten by TD Bank, the majority of respondents (54%) reported that cash forecasting is the area they spend the most time on. The survey also revealed that treasury has consistently devoted more time to cash forecasting than to any other area of cash and treasury management across four consecutive surveys.
• Corporate treasurers, tasked with the ownership and control of cash, devote most of their time to cash forecasting.  However, this area remains a persistent challenge, as many treasury practitioners report significant inaccuracies in their forecasts. 

As per the 2024 Generative AI in Treasury and Finance Survey Report, underwritten by the Cash Management Leadership Institute (CMLI) and powered by Strategic Treasurer, cash forecasting accuracy is the foremost challenge that both corporate treasury practitioners and providers (providers include fintech and banking respondents) see artificial intelligence (AI) addressing.

In fact, 65% of corporate treasurers and 56% of providers expect AI to improve cash forecasting accuracy. “When asked in a separate question how they perceived the potential impact of AI on cash forecasting accuracy, 92% of corporate respondents saw the impact as either significantly positive (38%) or moderately positive (54%). The remaining 8% were neutral, with no one seeing a negative impact”, as outlined in the survey report.

Liquidity

Safety and diversification of cash holdings emerged as priorities in the 2024 Association for Financial Professionals (AFP) Survey Report, underwritten by Invesco. Other key findings include:

• Sixty-four percent of organizations maintain a portion of their cash outside the US.
• Safety was identified as the most valued short-term investment objective for 65% of enterprises.
• Banks serve as the primary depositories for 47% of companies' US-based cash and short-term investment holdings.
• Over two-thirds of respondents observed that the earnings credit rate (ECR) for their companies did not keep pace with rising interest rates, with non-investment-grade companies experiencing the greatest impact (75%).

The US Dollar’s share of global foreign exchange reserves hits 30-year-low; Central banks increasingly invest in gold

• While the US dollar remains the world’s dominant reserve currency, its share of global foreign exchange reserves dropped to a 30-year-low of 57.4% in Q3 2024, according to the latest data from the International Monetary Fund’s (IMF) Currency Composition of Official Foreign Exchange Reserves (COFER). This marks the smallest share since 1994 and represents a decline of nearly 9% over the past decade. Based on IMF COFER projections, the US dollar’s global reserve currency share is expected to erode by another 10% over the next 10 years.
• Central banks worldwide, seeking a safe alternative to the US dollar, have been diversifying into a basket of other currencies (the euro, yen, and pound sterling) and gold. In line with this trend, central banks—led by those in China, Turkey, and India—added more than 1,000 metric tons of gold in both 2022 and 2023, according to the World Gold Council's 2024 Central Bank Gold Reserves Survey report published in June 2024. More recently, in May 2024, central banks reported purchasing an additional 10 metric tons of gold, as per data from the IMF and other sources.

Corporates change foreign exchange (FX) hedging programmes due to US election outcome

• The MillTechFX Corporate Hedging Monitor Q3 2024 reports that 94% of UK and US corporates are “Changing their FX hedging programmes due to the outcome of the US election.” Among the most popular moves are increasing hedge ratios (36.4%), which entails purchasing additional protection; and extending hedge lengths (46.0%), meaning protection is being secured for a longer duration. This demonstrates a proactive approach to ensuring stability amid market volatility. 

Talent challenges, bonus criteria, and top skills for career success

The 2024 AFP Compensation and Benefits Survey Report sheds light on the fact that:

• Challenges in talent management persist, with 60% of respondents citing recruitment of skilled treasury and finance professionals as an issue. Upskilling talent (48%) and talent retention (41%) were also identified as key challenges.
• Offering work-life balance (95%) and a flexible work environment (91%) are viewed by most treasury and finance professionals to be critical solutions for resolving talent-related issues.
• The majority of treasury and finance professionals (61%) consider operating income and EBITDA targets as the primary basis for bonus calculations.
• Strong analytical skills are regarded as the most important business competency for career success by over half of treasury and finance professionals.

The 13 critical statistics outlined in this segment reinforce key areas corporate treasury teams must prioritise in 2025. These include enhancing cash forecasting accuracy, ensuring the safety and diversification of cash holdings, responding proactively to shifts in global FX reserves, reassessing FX hedging strategies, and addressing ongoing talent management issues.

Additionally, with payments emerging as a pivotal component of corporate finance and treasury activities, and a growing emphasis on treasury technology—such as the adoption of AI in cash forecasting, fraud detection, and prevention—staying informed about these meaningful statistics will arm treasury and finance executives with the knowledge to remain agile, mitigate risks, capitalize on new opportunities, and prepare for future challenges.

⃰ Disclosure: Strategic Treasurer owns CTMfile.

Read more from this series:

To read the first part of this article series, click here.