What is a Single Currency Center Model?

A cash pool is a cluster of subsidiary bank accounts and a concentration account into which funds flow from the subsidiary accounts. A company may elect to pool cash within the home country of each currency (e.g., U.S. dollars are pooled in the United States), which is called the single currency center model. This is one of the more efficient methods used by larger organizations to manage their cash flows.

A variation on the concept is the multi currency center model, in which a company pools all of its foreign currency accounts in a single location. Multi-currency centers are generally easier to manage, but transactions are more expensive than under a single currency center model.