Arranging the foreign exchange hedge of a purchase or receipt of income (Aust)
Parent Policy
Foreign Exchange
Faculties, departments and divisions should consider hedging of contracts to pay and/or receive material amounts of foreign currency to protect against adverse movements in foreign exchange rates. Where such cases arise Monash University Treasury Department should be consulted to provide relevant information on foreign currencies and hedging. It is the ultimate decision of the faculty, department or division as to whether or not a hedge contract is entered into, recognizing that entering into a hedge does not reflect any view as to the future direction of currency movements.
Hedging should be regarded solely as providing a known AUD cost, or income, amount for the foreign currency amount concerned.
Arranging the foreign exchange hedge of a purchase or receipt of income (Aust)
- Contact the Treasurer to discuss the details of the proposed foreign exchange transaction
Responsibility
Requestor
- Faculty, department or division must be fully aware that the information required to hedge a payment or receipt needs to be as accurate as possible, any costs associated with failure to complete a contract due to incomplete or information provided, as evidenced by correspondence between the faculty, department or division and Treasury will be borne by the faculty, department or division.
Responsibility
Requestor
- Currency advice will be provided with supporting information from at least one major Australian trading bank.
Responsibility
Treasurer
- Organise the hedging arrangement, confirmation of rates and payments terms will be provided to the purchaser.
Responsibility
Treasurer
- Where the transaction relates to an asset, the purchaser/owner must liaise with both Treasury initially and the Assets Department to ensure that both the payments and assets are recorded appropriately.
Responsibility
Purchaser
Content Enquiries: Finance Policy
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