Foreign Currency Fluctuation Allowances in Department of Defense Acquisition Appropriations
NAVAL POSTGRADUATE SCHOOL MONTEREY CA
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This thesis examines the nature and significance of foreign currency exchange rate fluctuation problems experienced within Department of Defense procurement programs. It also examines the establishment of foreign exchange rates and the methods currently used within the Department of Defense to deal with losses resulting from exchange rate fluctuations. The current system for budgeting and covering losses incurred from exchange rate fluctuation contains several inefficiencies which place unnecessary administrative burdens and costs on financial planners and program managers. The avoidance of foreign exchange rate fluctuation is not realistic, however, the improvement of current budgeting and managing processes can reduce inefficiencies and management costs. Possible improvements to the current system include the use of a three year weighted moving average exchange rate for annual budgets involving foreign currencies. The inclusion of procurement programs in the Foreign Currency Fluctuations, Defense appropriation or the creation of a Foreign Currency Fluctuations, Defense Procurement appropriation would provide foreign exchange rate fluctuation coverage for procurement programs. Foreign currency exchange rates, Program manager, Reprogramming.
- Administration and Management
- Economics and Cost Analysis
- Military Forces and Organizations