Matching applies to transactions both within the group and with the third parties. It involves approximately balancing the expected receipts and payments in different currencies. Therefore, only the net unmatched part needs to be purchased on the foreign exchange markets, or hedged against.

The prerequisite for a matching operation is a two-way cash flow in the same foreign currency within a group of companies. This creates a potential for natural matching.

It is also possible to use currency receipts where a suitable match is not available to obtain the other foreign currency. This minimises the dealing costs.

The matching mechanism is similar to the multilateral netting since it involves the group treasury and causes the need for information, centralisation with the group finance, just before settlement. On the other hand, practical problems may arise because of the uncertain timing of third party receipts and payments. Unexpected delays can create problems for the multinational treasury to match receipts and payments. Furthermore, the possibility that the receipt of a sum, due on a certain settlement day, is postponed, but payment is nonetheless made on that same date as originally anticipated, creates some difficulties.