The University is best protected against exchange rate fluctuations when collaborators are paid in sterling, and the collaboration agreements is created in sterling. However, this places the exchange rate risk with the collaborator and this could cause them to discontinue their activity on the project if significant losses occur.
The Research Council awards are made in sterling, but we assume that the payments to collaborators will not be.
In these instances, as the X5 exchange rates are set for billing purposes only, using these rates for purchasing purposes may give rise to exchange rate losses at the University. To overcome this situation, it is advisable that you contact the Treasury team. The Treasury team will advise on an appropriate exchange rate for purchasing purposes, which will be used when the sterling budget is determined.
Written confirmation of the exchange rate supplied by Treasury should be forwarded to your Research Accounts advisor, along with any invoices that need to be paid using the quoted rate.
This will mean that the foreign currency invoices will match back to the sterling budget.