Managing Currency and Exchange for International Grantmaking
"Use wire transfers to ensure safety and timeliness. And make sure the grantee gives you complete information: the right name for the bank, the account number, and the international code number. When the bank does the transfer, it’s required to check the recipient against the [U.S. Department of] Treasury list, so you benefit from that extra due diligence.”
“If you know a country has a long history of currency devaluation, you know you’re not going to pay a lump sum up front. Knowing that, we can sometimes be strategic about holding back a portion of the grant....It’s a good idea to transfer funds in U.S. dollars so the grantee can convert to local currency as funds are needed, especially in inflationary environments. That also enables the grantee to negotiate about the exchange rate and date on which to convert the funds.”
Takeaways are critical, bite-sized resources either excerpted from our guides or written by GrantCraft using the guide's research data or themes post-publication. Attribution is given if the takeaway is a quotation.
This takeaway was derived from International Grantmaking.