Karibi Iketubosin 
The year 2024 has not been business as usual for treasury professionals. From persistent inflationary pressures to intensifying global trade fragmentation and accelerating digital disruption, treasury leaders have found themselves in uncharted waters.
In my experience supporting financial institutions through this period, it has become clear that treasury must now operate with a new mindset: one that is agile, data-informed, and grounded in strategic foresight.
As the global financial environment evolves, traditional treasury structures are being tested. The institutions that will emerge stronger are those willing to rethink how they manage liquidity, mitigate geopolitical exposure, and integrate emerging technologies into their operations.
This article offers a reflection on the key trends shaping the treasury function in 2024 and outlines practical approaches for navigating uncertainty.
Inflation Is Not Done Yet: Liquidity Planning Under Pressure
After an extended period of monetary tightening between 2022 and 2023, many expected inflation to ease by mid-2024.
However, services inflation and wage-related pressures have persisted longer than forecasted in both advanced and developing economies. For treasurers, this has complicated liquidity management and funding strategies.
Higher interest rates have increased the cost of debt, forcing companies to reassess their capital structure.
Meanwhile, rising input costs, driven by elevated energy prices and shipping disruptions, have placed greater strain on operating cash flows.
To address this, we’ve focused on three key responses: Real-time liquidity monitoring: Automated tools that track cash movements and bank positions hourly are now a baseline requirement. Lagging indicators are no longer sufficient in an environment where funding rates can shift weekly.
Cash preservation buffers: Instead of traditional minimum liquidity thresholds, we now use dynamic thresholds adjusted by inflation-linked cost assumptions, with alerts tied to early warning indicators such as wage spikes and fuel price surges.
Contingency funding agreements: In light of volatile commercial paper markets and changing bank appetite, we’ve secured standby facilities across multiple counterparties, diversifying short-term access to cash.
For many institutions, inflation is no longer a temporary threat, it’s a structural consideration in treasury planning. Leaders must embed this reality into their operating frameworks, forecasts, and scenario assumptions.
Trade Fragmentation: Supply Chains as a Treasury Risk Factor
The re-escalation of protectionist trade policies in 2024, led by tariff increases in the United States, retaliatory measures from China, and a broader shift toward economic nationalism, has highlighted the fragile nature of cross-border supply chains.
For treasurers, these developments are not abstract geopolitical events, they are direct financial risks that affect procurement flows, supplier payment cycles, and currency exposures.
This year, our treasury team worked closely with the procurement and legal departments to map supply chain dependencies across multiple jurisdictions.
What we found was that a tariff in one country could materially impact cost structures and liquidity timing in others. In response, we made the following adjustments:
Supply-linked FX hedging: We established new hedging mechanisms tied to import volumes and delivery timelines. This allowed us to manage FX volatility stemming from rerouted supply chains.
Multi-currency funding pools: Given delays in inbound shipments and export earnings, we restructured our funding mix to include USD, EUR, and GBP access, balancing exposure in anticipation of trade realignment.
Payment calendar adjustments: Longer transit and customs clearance times due to new tariff regimes required more flexible payment schedules and working capital reallocation.
The key lesson here is that treasury cannot operate in isolation. Trade fragmentation must be treated as a material financial risk, requiring cross-functional collaboration and real-time adjustment of financial plans.
Technology Acceleration: From Disruption to Integration
While macroeconomic pressures have dominated headlines, 2024 has also been a landmark year for financial technology. Generative AI, API-driven data integration, and cloud-native treasury systems have all seen wider adoption across banking and corporate finance teams.
However, adoption is only the beginning. The real challenge lies in operational integration.
We’ve approached this through a practical three-phase framework:
Model clarity – Before deploying any AI model, we define its purpose, required data inputs, and expected outputs.
For example, in automating cash flow forecasting, we distinguish between short-term liquidity triggers and long-range planning models.
Workflow embedding – AI tools are not standalone dashboards. They must be embedded into workflows, for example, flagging anomalies in the reconciliation system or sending alerts to traders when FX spreads breach thresholds.
Staff enablement – Tools are only as good as the people who use them. Treasury professionals now receive targeted training in reading model outputs, validating assumptions, and adjusting input parameters.
AI has allowed us to reduce the forecasting-to-decision cycle time from three days to a matter of hours. But it’s not about speed alone, it’s about responsiveness.
In the fast-changing world of 2024, the treasury that reacts first can secure funding, hedge exposures, and optimize cash use more effectively than competitors.
Building Treasury Resilience: Practical Priorities
Looking ahead to 2025, treasury leaders must strengthen their resilience frameworks across five dimensions:
Agility in Forecasting: Static forecasts are no longer viable. Treasury must rely on live, iterative models that adjust daily to changing inputs.
Geopolitical Sensitivity: Trade, supply chain, and FX exposures must be stress-tested not only for economic scenarios but also for geopolitical disruptions.
Funding Diversification: Credit availability is tightening. Institutions need standby lines, local-currency buffers, and digital marketplace financing strategies.
Cybersecurity Integration: As systems go digital, treasury must implement real-time transaction monitoring, authentication protocols, and fraud detection models.
Talent Development: The role of the treasurer now includes data literacy, model governance, and risk scenario planning. Teams need to upskill continuously to remain effective.
Conclusion
2024 has proven that treasury is no longer just a finance function, it is a critical driver of institutional resilience. Treasurers are managing not only cash, but complexity.
From inflation shocks to global trade tensions to technological acceleration, we are expected to deliver clarity and control in an unpredictable environment.
To meet this mandate, treasury leaders must operate at the intersection of data, policy, and operations. This means embracing change, integrating technology responsibly, and collaborating more closely with every function of the organization.
In the face of global uncertainty, a well-prepared treasury is not just a defensive function, it is a strategic asset.
