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Availability and Amounts of Foreign Funds
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Disbursing Clerk 1 & C - Military manual for administrative purposes
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ample DD Form 2668, Request for Bid (Purchase/Sale) for Purchase of Foreign Currency
Military Banking Facility MBFs  are  operated  under  Department  of  Defense contracts. Whenever possible, a DO should purchase foreign currency through an MBF. The DO issues a U.S.  Treasury  check  in  exchange  for  the  foreign currency   by   making   an   exchange-for-cash disbursement  check  payable  to  himself  or  herself  and endorsing it to the order of the MBF furnishing the currency.  Next,  the  DO  should  request  a  signed certificate from the MBF stating the amount of foreign currency  delivered,  the  rate  of  exchange,  and  the amount of U.S. dollars received in exchange. The DO retains this certificate and includes it in the official returns. U.S. Government Sources When no MBF is available, DOs should look to other  U.S.  DOs  or  activities  as  sources  of  foreign currency. This is particularly important when other DOs are holding excess or near excess currencies. U.S. Government  sources  include  the  following  activities  or officials: The U.S. Treasury Other DOD DOs U.S. DOs or cashiers at the American Embassy or  Legation To obtain foreign currency from these sources, the DO   normally   draws   an   exchange-for-cash disbursement  check  payable  to  himself  or  herself  and endorses it to the order of the U.S. DO furnishing the foreign  currency.  When  the  source  is  a  U.S.  DO  or cashier  at  an  American  Embassy  or  Legation,  the procuring  DO  can  make  the  check  payable  to  the American  Embassy  or  Legation,  if  so  requested. Regardless of the source of procurement, the DO must request a signed certificate stating the amount of foreign currency  delivered,  the  rate  of  exchange,  and  the amount of U.S. dollars received during the transaction. This certficate must be included as a part of the DO’s financial returns. Commercial Sources When an MBF or another U.S. Government source is not available, the DO can turn to commercial sources. This is a last resort for many reasons. First, the DO must strictly follow the applicable procedures established by State Department regulations or  the  currency  control  laws  of  the  country  where  the currency   will   be   used. Second,  if  there  are  no established  procedures,  the  DO  must  follow  the  local currency  control  regulations. Next, the DO should try to procure foreign currency from the commercial source by sale of a U.S. Treasury check. If that is not possible, however, the DO can exchange U.S. currency for foreign currency. When  exchanging  U.S.  currency  for  foreign currency,   the   DO   faces   additional   problems. Depending  on  the  country,  the  legal  rate  of  exchange may  or  may  not  be  a  fixed  rate.  The  procurement guidelines the DO must follow depend on whether the foreign   country   has   a   fixed   (official)   or   unfixed (unestablished) rate of exchange. FIXED  LEGAL  RATE  OF  EXCHANGE.—  A fixed legal rate of exchange exists when the rate of exchange  has  been  established  by  agreement  between the United States and the foreign country. In a country with a fixed legal rate of exchange, the DO can purchase foreign currency without the formality of obtaining bids.  When  currency  is  purchased  under  this  provision, the DO must obtain a statement from the bank or other source showing the amount of U.S. dollars exchanged, the rate of exchange, the amount of the foreign currency purchased, the date, and the name and address of the bank or other source. This statement must be signed by a representative of the source from which the purchase was made and must be included in the DO’s financial returns. UNFIXED LEGAL RATE OF EXCHANGE.—  An  unfixed  legal  rate  of  exchange  is when the rate of exchange has not been established by formal  agreement  between  the  United  States  and  the foreign country. To obtain foreign currency in a country with an unfixed rate of exchange, the DO must obtain written bids from at least three authorized sources (if, in fact, these sources are available). The DO uses the DD Form 2668, Request for Bid (Purchase/Sale), to obtain the bids. Figure 5-1 shows a sample DD 2668 for the purchase of foreign currency. When practical, the DO should also obtain bids from sources outside the country where the currency is to  be  purchased. Each  written  bid  should  be  in duplicate. The DO is required to accept the bid that provides   the   most   beneficial   rate   to   the   U.S. Government.   Another   commissioned   officer   must certify the bid as being the most beneficial of all the bids obtained. A copy of the accepted and certified bid must be  included  with  the  DO’s  financial  returns.  The 5-3

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