# PAMP Treasury & FX Settlement PAMP Treasury & FX Settlement is the multi-currency management subsidiary within the Fintech Division, serving as the central treasury function for the entire PAMP ecosystem. It manages foreign exchange operations, cross-border settlement, liquidity pooling, and currency risk hedging across all 7 Wave-1 markets. Every cross-currency transaction in the ecosystem — whether a marketplace purchase, remittance transfer, or merchant payout — flows through Treasury for FX conversion and settlement. As a **Phase 1 MVE subsidiary**, Treasury is foundational infrastructure that enables PAMP's pan-African operations across ZAR, NGN, KES, MAD, CDF, XOF, and GHS. ## Business Model PAMP Treasury operates a **FX spread + treasury management fee model**: - **FX Spread Income**: 0.3–1.5% markup on mid-market exchange rates for all ecosystem currency conversions - **Treasury Management Fees**: Monthly fee charged to subsidiaries for multi-currency account management - **Hedging Services**: Premium for forward contracts and FX hedging products offered to enterprise merchants - **Float Investment Income**: Returns on aggregate multi-currency liquidity pools invested in money market instruments - **B2B FX Services**: Competitive FX rates for external businesses needing African currency conversion Cross-Border Sales"] REMIT_FX["PAMP Remit
Corridor Transfers"] PAY_FX["PAMP Pay
Multi-Currency Settlement"] WALLET_FX["PAMP Wallet
Currency Conversion"] end subgraph "PAMP Treasury Engine" RATE["FX Rate
Aggregation"] POOL["Liquidity
Pool Management"] HEDGE["Hedging &
Risk Management"] SETTLE_FX["Cross-Border
Settlement"] end subgraph "Liquidity Sources" BANKS["Partner Banks
(Nedbank, Local)"] INTERBANK["Interbank
FX Market"] MM_POOL["Mobile Money
Float Pools"] RESERVE["PAMP Reserve
Accounts"] end MKT_FX --> RATE REMIT_FX --> RATE PAY_FX --> RATE WALLET_FX --> RATE RATE --> POOL POOL --> HEDGE HEDGE --> SETTLE_FX BANKS --> POOL INTERBANK --> POOL MM_POOL --> POOL RESERVE --> POOL style RATE fill:#f59e0b,stroke:#d97706,color:#fff style POOL fill:#3b82f6,stroke:#2563eb,color:#fff style HEDGE fill:#10b981,stroke:#059669,color:#fff `} /> ## Total Addressable Market (TAM) ## Pricing Structure $10K per contract", notes: "1–6 month forward FX contracts for enterprise merchants" }, { service: "Treasury Management Fee", pricing: "$200–$2,000/month", volume: "Per subsidiary", notes: "Multi-currency account management, reporting, compliance" }, { service: "B2B FX Services (External)", pricing: "0.5–1.5% spread", volume: ">$5K per transaction", notes: "Competitive rates for non-ecosystem businesses" } ]} caption="PAMP Treasury — Pricing Schedule" filterable={true} /> ## Operating Model - **FX Rate Aggregation**: Real-time rates sourced from multiple liquidity providers (partner banks, interbank market, central bank reference rates) with best-execution routing - **Liquidity Pool Management**: Pre-funded currency pools in each Wave-1 market to enable instant settlement without waiting for interbank clearing - **Multi-Currency Accounts**: Each subsidiary maintains virtual multi-currency accounts managed by Treasury, with real-time balance visibility - **Settlement Engine**: Automated cross-border settlement with netting optimization — reducing gross settlement volume by batching offsetting flows - **Risk Management**: Daily VaR (Value at Risk) monitoring, position limits per currency, and automated hedging triggers for volatile pairs (NGN, CDF) - **Compliance**: All FX transactions comply with local exchange control regulations, central bank reporting requirements, and anti-money laundering rules ### Multi-Currency Management (South Africa)"] NGN["NGN Pool
(Nigeria)"] KES["KES Pool
(Kenya)"] MAD["MAD Pool
(Morocco)"] CDF["CDF Pool
(DRC)"] XOF["XOF Pool
(WAEMU/Senegal)"] GHS["GHS Pool
(Ghana)"] end subgraph "Treasury Operations" NET["Netting
Engine"] SETTLE_OP["Settlement
Execution"] REBAL["Pool
Rebalancing"] REPORT["Regulatory
Reporting"] end subgraph "Risk Controls" VAR["Daily VaR
Monitoring"] LIMITS["Position
Limits"] HEDGE_OP["Auto-Hedge
Triggers"] end ZAR --> NET NGN --> NET KES --> NET MAD --> NET CDF --> NET XOF --> NET GHS --> NET NET --> SETTLE_OP SETTLE_OP --> REBAL REBAL --> REPORT NET --> VAR VAR --> LIMITS LIMITS --> HEDGE_OP style NET fill:#3b82f6,stroke:#2563eb,color:#fff style VAR fill:#ef4444,stroke:#dc2626,color:#fff style HEDGE_OP fill:#10b981,stroke:#059669,color:#fff `} /> ## Regulatory Notes | Market | Regulatory Body | Key Requirements | |--------|----------------|------------------| | South Africa | SARB, FinSurv | Authorized Dealer (AD) or ADLA license for FX dealing, Financial Surveillance reporting, exchange control compliance | | Nigeria | CBN | Authorized Dealer license, CBN FX window participation, I&E window compliance, capital flow reporting | | Kenya | CBK | Foreign exchange dealer license, CBK reporting requirements, capital account regulations | | Morocco | BAM, Office des Changes | Foreign exchange authorization, Office des Changes approval for cross-border transfers, MAD convertibility restrictions | | DRC | BCC | Foreign exchange bureau authorization, BCC reporting, CDF exchange rate regulations | | Senegal | BCEAO | WAEMU foreign exchange regulations, BCEAO authorization, XOF peg compliance (EUR-linked) | | Ghana | BoG | Foreign exchange dealer license, BoG FX reporting, GHS exchange rate monitoring | **Exchange Control Compliance**: Several Wave-1 markets have strict exchange controls (South Africa, Nigeria, Morocco). Treasury maintains compliance with all capital flow restrictions, repatriation requirements, and central bank reporting obligations. ## SWOT Analysis ## Competitive Positioning ## KPI Dashboard