A Study On Treasury Cash Management In China

In recent years, with the growth of financial revenue and advance of reform in the treasury payment system centralization, the balance of the state treasury stock also increasing. But the management of this funds is only reserve them on the central bank. It's an important problem to increasing the using of these funds.This paper first demonstrates the necessary of starting the management of treasury cash. The balance of the state treasury stock is large and increasing every year, this phenomenon brings many disadvantages. The management of treasury cash do good to advance the reform in the treasury payment system centralization, increasing the revenue of using these funds, lightens the burden of government debt, increasing the harmony of financial policy with monetary policy. Through reform in the treasury payment system centralization at these years, we have acquired some effects. Through studying the practice on managing treasury cash of developed countries, we've learned advance of reform in the treasury payment system centralization is the basis of our country starting the management of treasury cash. Then using a model of cash management by firms, analyses the changes of treasury cash and budgetary payment, calculated the best stock of treasury cash.This paper also researches the operation modes of treasury cash. Through studying the case of finance bankruptcy in American country and the practice on managing treasury cash of developed countries, combining the facts of our country and principle in operating treasury cash, can come to the conclusion: the operation of treasury cash adapt to the monetary market. Combining the facts of one city treasury cash, analyses the modes in operating treasury cash.This paper put emphasis on the combination the theory with practice, choose one city treasury cash situation to research the best stock of treasury cash & the modes in operating, and bring forward suggestions, helps local government carrying out the management of treasury cash.