What are the key concepts that guide the management of treasury and FX at Ita˙ Unibanco?

The key to our success is quite simple, we passionately follow our DNA, and stick stringently to a handful of principles. Firstly, we work with the client and for the client. Another important aspect of our business model is that we put much emphasis on our staff ñ they really do make a difference, both to the company itself and the clients they look after. Something else we strive to do, and have managed successfully, is to develop a challenging and open environment, while also striving to always be a step ahead. This is perhaps the most crucial element in our development, coupled with the fact that we think and act as business owners.

Would you describe Ita˙ Unibancoís treasury and FX management to be conservative or liberal, and why have you decided to opt for one or the other?

Ita˙ Unibanco is most definitely a conservative bank, as we consider a conservative approach to be a necessary conduct for a universal bank that is a market leader in Brazil. As is familiar to most, Brazil is a country that is complex and diversified in its very nature. Most importantly, it is also expanding internationally with increasing force and quickness.

What is the managementís strength, and what makes it stand out from the competition?

There are many reasons behind our standing out from the competition. As strange as it may sound, our client base has directly contributed to our success as a company, and it has actively helped shape the DNA of Ita˙ Unibanco. Our clients are constantly challenging us to develop new ideas and solutions that are creative yet functional and simple. Another significant business booster is our skilled quality macroeconomic team that is key in our quest to provide support to any business decision we take. Something else that makes us stand out from the rest is our particular culture and our constant search for leadership in the market.

You received a FX & Treasury Management Award recently. What does the award mean to you?

It was a great honour for us to receive the FX & Treasury Management Award. More than anything else, it means that we have been recognised internationally as a highly reputable group that constantly strives to work with and for the client.

Given the economic turbulence over the past twelve months, what measures have been put in place to ensure progress and development at Itau Unibanco?

At difficult times it is crucial to stay on top of the game. When the turbulence took hold, we went about actively revising our market and credit risk framework. At the same time, we have also improved our workflow and liquidity management, while simplifying our business overall.

What is the structure behind your team and which are the key departments that form part of Itau Unibanco?

The treasury department manages the bankís market and liquidity risk that originate with the clients. It encompasses five sub-teams, all of which have different responsibilities and areas of expertise: the trading team, for example, manages market risk, while the banking team takes care of liquidity management and manages structural and accrual risks. The ALM team, meanwhile, strives to improve the bankís balance sheet and to minimise mismatches; and the Macroeconomic team provides a view that supports our business. Finally, the business management team provides tools to support tradersí decision-making in addition to facilitating their relationship with the bankís control and  compliance departments.

What type of skills do you require from different members of your team?

At Ita˙ Unibanco, we are always searching for highly-achieving professionals who display excellent team-working skills that will enable them to become part of the collective creation process. Would-be Ita˙ Unibanco employees also have to demonstrate that they can interpret the market well, and also be able to think on their feet if needed and take action with good rhythm. We also require that our staff members are able to carry out any task in a mature and flexible fashion, however challenging that task might be.

How do you predict the market will progress next year?

I believe that the FX market will most likely remain volatile due to the wariness of some governments with regards to their currency levels. I would also imagine that interest rates will remain at historically low levels as a result of the low growth perspectives in developed markets.

What is the volume reached by the treasury and foreign exchange desks of Ita˙ Unibanco?

In Brazil, the derivatives market is larger and deeper than the spot. Looking at BM&F for a benchmark, Itau-Unibancoís Treasury is responsible for 10 percent of the volume. The main focus is on FX, interest rates and volatility.

What is the expected growth this year as compared to last year in terms of volume?

Brazilís interest rate market should grow at the same rate as last year ñ at around 10 percent ñ given the continued interest of foreign investors for local debt. However, some of last yearís on-shore FX market volume should move offshore, given some policy measures introduced lately by the Brazilian government to contain the appreciation of the real.