The way how I've dealt with this is to put in the agreement the exchange
rate in effect on the date the agreement was signed by Harvard.  This
"locks-in" the exchange rate and eliminates the headaches of dealing with
fluctuating rates.    In your case you'd be putting in the value of the Euro.

Hope this helps.

Sharon Comvalius
Assistant Director
Office for Sponsored Research
Harvard University

At 03:12 PM 8/28/02 -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 Admin              E-mail:  xxxxxx@cofc.edu
>College of Charleston
>66 George Street
>Charleston, SC  29424
>
>
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