How does IDRC account for exchange rate fluctuations?
IDRC being a Canadian Crown Corporation with its funding appropriated and reported in Canadian Dollar restricts its total commitment to your project to the Canadian dollar amount specified in the budget attached to your grant agreement. The IDRC grant equals the forecast costs of your project based on the exchange rate between the working currency of the project and the Canadian dollar at the time the project was approved. Payments during the life of your project are determined in Canadian dollars and are adjusted to reflect ongoing changes in exchange rates. For this reason, it is important to record and report all expenditures and project payments in the working currency of your project. When the project is closed, the final project payment is adjusted to account for exchange variations, and any relatively minor shortfall is normally absorbed as part of your institution’s local contribution to the project. On occasion, exchange variations may result in significant shortfalls with the
