Foreign Exchange Management Policy

This tool contains three sample policies that set forth the appropriate guidelines for foreign exchange management.

According to this policy, while maintaining foreign exchange transaction costs within budget targets, it is the company’s policy to minimize foreign exchange losses due to balance sheet exposures; minimize the risk that U.S. dollar earnings through the end of the outlook period will be adversely impacted by currency movement; and ensure that the foreign exchange committee has sole authority, as granted by the board of directors, to determine which balance sheet and economic exposures to hedge and which directions are not economically feasible to hedge.