Practices Used To Purchase Foreign Currencies for U.S. Contributions to NATO
ID-79-51: Published: Sep 26, 1979. Publicly Released: Oct 1, 1979.
- Full Report:
The United States Army Support Group to the North Atlantic Treaty Organization (NATO) purchased foreign currencies needed for contributions to NATO. A study was made of this Support Group's Purchasing practices.
It was found that this Support Group was accelerating or delaying NATO payments in an attempt to obtain favorable exchange rates. Such speculative efforts were considered contrary to the intent of Treasury regulations that financial risk not be a part of meeting foreign currency needs for government overseas operations. The support group agreed to conform with Treasury regulations.
Recommendation for Executive Action
Comments: Please call 202/512-6100 for additional information.
Recommendation: In order to capitalize on interest savings and the best available exchange rates for foreign currencies, the Secretary of the Treasury should (1) review with cognizant commands NATO payment requirements and arrange for U.S. payments to be made at the latest acceptable date, and (2) review with the NATO Support Group the Treasury Department's requirements for obtaining competitive bids in purchasing foreign currencies.