Luc:

Partially, I guess we're snobby and absolutely love the greenback, so we insist on payments in them.

Actually, it's because of exchange rates. Because they vary, sometimes widely, it is better for us to get the revenues in US dollars. In cases where the foreign currency fairly predictably tracks with the US dollar, it really isn't an issue. This is largely the case with Canada, and most EU nations. In cases similar to Argentina, Brazil, and Russia, though, advance payments in US currency would be required.

There is, of course, a bank fee for converting the currency which normally is not chargeable to the grant, nor can we allocate it to our F&A. Since we're always broke, we want to minimize expenses where ever possible. Since we can get our money in US with no cost to us, we require it.

There is another factor, even when we do get our money in US dollars. We could still get hit with a bank fee if the funds were drawn against a foreign bank. Even though the funds are in US dollars, because the banking system in the US doesn't subscribe to any other banking system, our bank will charge us a fee to take the cheque (for you US persons, that's a check). This happened to me with a bank in Canada, in fact. The cheque was US dollars drawn against a Newfoundland bank. We were charged $45 for a US $350 cheque. Hardly worth it.

Greg Schmidt

Luc Simon wrote:

Hi everybody,

We also are sometimes on either side of this fence. We are sometimes
recipients of funds from foreign entities, and we sometimes send money to
foreign institutions.

Basically, went we accept the funds, we take whatever is offered !

I see some contradiction in most responses so far: How can it be that US
institutions would only accept (require payment) in US$, and recognize that
when they are the one to award the funds, they insist in a fixed US$ amount
also ?

In practical terms, when we receive an award in a foreign currency, we
approximate the amount in our own currency, and make adjustments along the
way as we cash in the payments. Small price to pay for internationalization
!!

Regards,

Luc Simon



Le 28/08/02 17:04, « Herbert B. Chermside » <xxxxxx@VCU.EDU> a écrit :


 
 If we are doing the work, we quote in US$ and require payment in
US$.  Eliminates the risk.  Otherwise, I'd advise getting the department to
guarantee from its own funds any US$ difference lost.

We're pretty one way about it -- if we are subbing to someone else, we
limit the sub to a maximum of X US$, too.

Chuck


At 03:12 PM 8/28/2002 -0400, you wrote:

 
 Has your institution ever accepted a grant agreement from a foreign
country in which  the compensation amount was expressed in a foreign
currency instead of US Dollars? If so, do you have any suggestions about
how we should deal with the risk of
currency exchange rate changes over the course of the contract period
(four years).

We are negotiating a four year subcontract with a research foundation in

a European country that is funded by the European Union, and we are very
concerned
that if the Euro is significantly devalued over the four year period, we
could suffer a loss on the cost reimbursement agreement.  The European
country would be paying us, and the foundation's contract negotiator
said that the subcontract has to be in Euros.

Laurie

--

Laurie P. Chamness                   Phone:  (843) 953-4973
Assistant Director                   Fax:  (843) 953-6577
Research & Grants Admi
n              E-mail:  xxxxxx@cofc.edu
College of Charleston
66 George Street
Charleston, SC  29424



 
 
 

=========
Luc Simon

Conseiller en gestion de la recherche
Vice-rectorat a la recherche
Université Laval
Telephone: (418) 656-2131 - poste 5301
Telecopieur: (418) 656-2506
Email: xxxxxx@vrr.ulaval.ca


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