Foreign Exchange Management Plan Template
The CFO should clearly document the foreign exchange policy prescribed by the Board of Directors and Top Management in the Foreign Exchange Management Plan Template. The CFO should execute foreign exchange management in accordance with TM1040-1 FOREIGN EXCHANGE MANAGEMENT PLAN.
Important factors to consider in foreign exchange management include:
- Annual sales (receivables) and purchases (payables) made in foreign currencies;
- Historical volatility of any foreign currency (in relation to U.S. Dollars) in which the company has receivables and payables; and
- Current conditions or potential future conditions that could cause volatility of particular foreign currencies or exchange rates in general.
The CFO should conduct a review meeting annually, at a minimum, or as needed with Top Management and the Board of Directors to discuss the results of the TM1040-1 FOREIGN EXCHANGE MANAGEMENT PLAN. Based on the results of the FX review meeting, the CFO should make the necessary revisions to the Foreign Exchange Management Plan Template, as directed by Top Management and the Board of Directors, and submit the revised plan to the Board.
Foreign Exchange Management Plan Template Details
Format: Microsoft Word 2013 (.docx)
Category: Treasury Management
Procedure: Foreign Exchange Management Procedure TM1040
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