On Nov. 26, URY GVT instructions re obligations in foreign currency.
URY GVT Ministry of Finance published Instruction 6/2024 regarding the recognition of income and payments of obligations contracted in foreign currency and Annex I.
Background
By Resolution 14365, payments for obligations contracted by the state are made available in the same currency in which the contract and the invoice were made.
This provision prevents crossing of currencies between contracting and payment and minimizes impact of exchange rate differences when making unnecessary conversions.
Supplier must follow procedure for registration of foreign currency account in RUPE.
Highlights
Instruction defines unique criteria for recording income and payment of obligations.
Income, payments to beneficiaries in Integrated Financial Information System (SIIF).
Contracts will be recorded according to the currency defined in the purchasing process.
ARCE specifications are the only exchange rate interbank rate published by URY CB.
Suppliers who arise from contracts and/or invoice in foreign currency (dollars or euros) must have an account registered in RUPE in said currency to complete the collection.
Credits in foreign currency will be adjusted to interbank rate published by URY CB.
Executing Units must provide an estimated additional rate increase for credit reserves.
When issuing the obligation in foreign currency, exchange rate used may be increased by up to 10% to cover possible fluctuations between the obligation and its payment.
Amount ordered to be paid will be paid as long as the balance of obligation allows it.
Effectiveness
As of Jan. 1, 2025, SIIF system will only use interbank rate published by URY CB.
Also, SIIF will check that the obligation currency is equal to the account's currency.
This control will apply to obligations issued against 2025 budget and subsequent years.
