Financial Services

Foreign Currency Expenditure Guidelines

The nature of the University's business means it increasingly deals with international organisations that use currencies other than the Australian dollar.

All expenditure should be negotiated in Australian dollars to avoid the risk of currency fluctuations.

When purchasing goods, services or capital items in a foreign currency, consideration should be given to obtaining forward foreign exchange cover. Where the amounts are greater than A$50,000 contact Financial Services, Treasury and Investments to discuss your options to minimise possible losses before contracting or committing the University to the exposure.

The period of any forward contract should not exceed 12 months unless approved by the Chief Financial Officer.

It is the University’s standard practice to enter into a forward foreign exchange hedge contract only after the underlying contract (e.g. purchase agreement) has been executed to avoid exposing the University to a potentially unrequired foreign currency exposure. To protect against currency fluctuation on major transactions which are at the final stages of negotiation and are virtually certain to go ahead, departments can seek special approval from the Chief Financial Officer to enter in to a forward foreign currency hedge. In the case of transactions relating to research projects such requests should be made on the recommendation of the Deputy Vice-Chancellor (Research).

All foreign exchange transactions and arrangement of forward foreign exchange contracts must be undertaken by Financial Services, Treasury and Investments.