Revised: 3/2008
7-1
CASH MANAGEMENT POLICIES AND PROCEDURES HANDBOOK
CHAPTER 7. FOREIGN TRANSACTIONS
Section 1.0 General
This chapter prescribes the Department of Commerce cash management policies and
procedures relating to transactions with foreign countries and international organizations.
These policies and procedures cover collections and deposits of funds from foreign
sources, disbursements to payees in foreign countries, as well as the system of control
over the use of excess and near-excess foreign currencies. Organization units should
follow the principles and standards contained in this chapter when guidance is needed on
foreign transactions.
Section 2.0 Policy
a. Organization units will observe the following policies to ensure that the cost
of foreign transactions are kept to a minimum:
1.
U.S. dollars are retained in the account of the Treasury as long as
possible to minimize interest costs on the public debt;
2.
Interest on Federal funds will not be used to subsidize program
activities; and
3.
Arrangements with foreign countries and international organizations will
accommodate the financial policies and procedures of each participating
country or organization to the maximum extent feasible.
b. Specific guidelines are as follows:
1. The preferred currency in all international financial arrangements is the
U.S. dollar, except in those instances where the payee is located in a
foreign country and the country is not listed by OMB as being an excess or
near-excess foreign currency country (I TFM 4-2075.40 and 6-8070.80).
2. Unless authorized by the Secretary of the Treasury, an organization unit's
accountable officer shall not purchase or direct the purchase of foreign
exchange from any source outside the U.S. Government, except when
exchange for the purpose intended is not available for purchase from
accounts maintained by the Treasury. In such event, purchases should be
made from sources authorized by the Government of the country
concerned i