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HomeMy WebLinkAbout16-18 US Dollar Bank Account and Currency Exchange POLICY Section Policy No. Page Financial 16-18 1 of 1 • ' y/f, Policy Title Date: Resolution r` No. U.S. Dollar Bank Account and Currency September 8,2015 361/15 Exchange Purpose: The purpose of this policy is to generate exchange gain revenue to offset the additional cost to capital that results from a fluctuating Canadian dollar(CDN$) relative to United States dollar(US$). Policy Guidelines/Procedures: 1) Administration will only consider converting Canadian dollars(CDN$)to U.S. dollars (US$) when the County's primary financial institution Canadian/U.S. dollar exchange rate reaches 1 CDN$ =0.90 US$. 2) Administration will assess economic forecasts and project where the CDN$/US$exchange will peak and will not hedge if the peak is expected to be above 1 CDN$=0.95 US$. 3) If a currency hedge is placed, Administration will only convert from US$to CDN$ if the rate drops to 1 CDN$= 0.85 US$at a minimum. 4) The maximum transfer to the US bank account will be$1,000,000 CDN, however, cashflow requirements for expenditures will be assessed by the Finance Department before making the transfer. 5) The transfer will be authorized by the Chief Administrative Officer or designate and countersigned by the Reeve or designate. 6) An accounting will be provided monthly through the Monthly Bank Reconciliation Report to Council that indicates account balances and exchange gains/losses. 7) It will be the responsibility of Department Managers to determine the capital cost which needs to account for any possible fluctuations in the CDN$/US$exchange rate at the time of the estimate to the time of procurement. A factor not exceeding 15%may be applied to the original estimate of the capital cost.Any factor selected must be approved by the Chief Administrative Officer or designate. Bob Long i Al oggan Reeve / CAO Approved: September 8, 2015 Review Date: September 8,2018