GAP 200.510, Currency Exchange

Contents

1. General
2. Definition
3. Exchange Rates Used
4. Procedures
5. Who to Call

I. General

The purpose of this GAP is to provide information to departments on currency exchange rates. It provides the uses of the exchange rates and guidance on locating the correct exchange rate method for their specific circumstance.

II. Definition

An exchange rate between two currencies is the rate at which one currency will be exchanged for another. It is also regarded as the value of one country’s currency in terms of another currency.  Exchange rates are determined in the foreign exchange market, which is open to a wide range of different types of buyers and sellers where currency trading is continuous.

III. Exchange Rates Used

The following are types of cost sharing: Applicable Currency Exchange Rates Used in Central Administrative Departments

1. Employee Travel & Reimbursement - Has links to 2 exchange rate websites, OANDA and the U.S. Treasury.   OANDA provides a currency conversion function and the U.S. Treasury provides current exchange rates.
2. Cash Management uses Wells Fargo rates for conversion.
3. Accounts Payable uses OANDA rates to convert from one currency to another for reimbursement of expenses. When making a wire transfer in a foreign currency, Accounts Payable uses the spot rates determined by Wells Fargo at the time the wire is submitted to Wells Fargo.
4. Corporate Cards use the Bank of America exchange rate. The rate is determined at the time of the transaction by Bank of America.
5. Procurement uses the OANDA rates provided by Accounts Payable.

IV. Procedures

The following procedures should be used for converting currency either from USD to foreign currency or foreign currency to USD.

1. When submitting receipts for reimbursement, it is acceptable to use one of the following for converting expenses from one currency to another:
   1. The average rate for the duration of the trip, provided either by OANDA or U.S. Treasury
   2. The rate the traveler exchanged the currency within the foreign country
2. When submitting receipts to document a travel advance, issued in a foreign currency, the exchange rate used at the time of the travel advance is the only applicable rate.
3. Adjusting JV’s in order to reconcile to a bank account would use the Wells Fargo rate provided by Cash Management - Call for information (919) 668-0880.
4. Wire Transfers conversion rate is determined by Wells Fargo at the time the wire is submitted. For invoices in foreign currency, it is recommended the invoice be paid in the foreign currency to ensure full payment. It will be converted to USD in SAP by Accounts Payable at the Wells Fargo rate.

V. Who To Call

Depending on the transaction details, please call the following with questions related to the use of exchange rates: