Peru

case studies
peru
ecosystem
city administration
solution
efficiency optimization

Centralized payments improve efficiency and lower foreign exchanges costs

The Ministry of Foreign Affairs of Peru (Ministerio de Relaciones Exteriores) manages foreign relationships and diplomatic personnel abroad, and provides financial support and payroll payments for embassies and consulates around the world

The challenge

The Ministry of Foreign Affairs (MoFa) sought a banking partner to provide a solution for its payroll requirements for workers at home and overseas. MoFa previously purchased US dollars from a third-party bank and then deposited these funds in a New York-based Citi International Payment Account or another bank account in order to make cross-border payments. MoFa wanted to centralize its payments and account reconciliation processes and have online access to all accounts of foreign missions. It also wanted to be able to make foreign currency payments from its Citibank del Peru US dollar and local currency accounts.

The solution

Citi's WorldLink® multi-currency payment services solution enables MoFa to pay its missions around the globe from its Citibank del Peru US dollar or local currency accounts. It can also buy US dollars through WorldLink using funds in its Citi local currency account without the need to go to another bank, which optimizes efficiency and reduces costs.

The result

MoFa has gained a solution that meets its objectives and has expressed satisfaction with its successful implementation and Citi's ongoing support.

The use of WorldLink's local funding capabilities has eliminated the need for MoFa to obtain foreign exchange quotes from multiple banks, which was a

time-consuming and costly process. Moreover, by centralizing payments from its local accounts, MoFa has also reduced operational risk.

MoFa is now able to initiate transactions online, making payments more efficiently, reducing the amount of time it spends on payroll activities, including monthly salary payments processing, and further lowering costs. Overseas employees of MoFa and foreign missions around the world now have their salaries and other payments paid quicker as a result of faster transaction processing and funds clearing. In addition, the solution eliminates extra charges for payments to beneficiaries with Citi accounts.