---------- Forwarded message ----------
Date: Fri, 22 Oct 1993 13:09:40 HST
From: Roberta Winjum <robertaw@UHUNIX.UHCC.HAWAII.EDU>
Subject: Exchange Rates

I think Susan Davis did an excellent job of explaining how vendors/
publishers handle exchange rates.  There is one other option that I know
some subscription vendors use.

For some of the vendors I have worked with, at the time they received our
prepayment, they immediately converted it to foreign currency, or
currencies.  At that point, the exchange rate for the library is
established.  The rate, therefore, is dependent on what day the vendor
buys the foreign currency.  After that, they are paying publishers list
price in foreign currency.

I've heard of some libraries speculating on the increasing/decreasing
value of the dollar versus the financial advantage of prepaying by a
certain date, in an attempt to get the best rates possible.  My crystal
ball doesn't work that reliably.

Vendors will tell you if they follow this practice, and most are very
willing to explain the whole method they use (which can get very
confusing).  If you familiarize yourself with the method your vendor(s)
use, you may not be able to provide your accountant with proof of why you
were charged a certain price, but maybe you can dazzle her/him with your
brilliance.

Roberta Winjum, Assistant Head of Serials
University of Hawaii at Manoa Library