Foreign Currency Strategies: Why Are Our Hands Tied.

摘要

This essay explores the advisability of developing an Army corporate strategy to ameliorate the effects of foreign currency fluctuation on the Army budget. Initially there is a discussion of the current policies and regulations that govern the Army's foreign current strategy. This is followed by an introduction and assessment of private sector tools that are used to offset the impact of adverse foreign currency fluctuations and to take advantage of favorable projections. Once these tools have been introduced, a proposal is put forth that would allow the Army to take advantage of a proactive, positive strategy using futures contracts rather than the current reactive policy that leaves foreign currency needs to the mercy of the daily foreign currency market. Arguments that the impact can easily be adsorbed by the federal budget and that the government should not be involved in speculation are rejected in favor of a strategy that recognizes the declining military budget. Foreign currency fluctuation should be managed so it has a positive rather than a negative influence on budget execution. (sdw)