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