text: Chapter 3
  same principles and guidelines established for controlling U.S. currency. All DOs, deputy DOs, pay agents,
  and cashiers who engage in foreign currency transactions will maintain a record of such transactions on DD
  Form 2663 (Foreign Currency Control Record). As required for each account, the DO will solicit
  competitive proposals from local financial institutions in the area to secure the most beneficial banking
  agreement in conjunction with the FMSC banking section.
  CURRENCY EXCHANGE
  3-24. FM units maintain an important role in currency exchange and currency control. Currency exchange
  plans must consider all members of the uniformed Services, DOD civilians, authorized U.S. contractor
  personnel, other U.S. Government personnel, NGO personnel, and Pay Agents. All currency exchanges
  from U.S. to foreign currency or from foreign currency to U.S. must comply with currency control
  standards to discourage black market activities. Currency exchange, when done in large amounts, is very
  time consuming. FM units may perform conversions due to a number of circumstances. They include:
  * Movement of forces from one country to another.
  * Upon initial deployment to and final departure from the AO.
  * Prevent and control black market activities.
  * Assist in controlling inflation.
  3-25. FM units will exercise caution when exchanging U.S. currency to alleviate laundering points for
  enemy currency, counterfeit currency, black market operations, and currency arbitrage. FM units may
  process EFTs or issue U.S. Treasury checks in exchange for excess currency accumulated by Service
  Members. Additionally, military banking facilities (MBFs), tactical field exchanges (TFEs), and
  nonappropriated fund (NAF) custodians may need to deposit their holdings of currency and coins with the
  nearest FM unit. U.S. currency and coins may be turned in to the servicing FM unit in exchange for an EFT
  transaction or a U.S. Treasury check.
  MULTINATIONAL FORCES CURRENCY SUPPORT
  3-26. When an agreement has been negotiated between the United States and a multinational nation, DOs
  may be authorized to advance currency on an emergency basis to cashiers or members of the multinational
  nation’s armed forces. Such agreements may require multinational forces to provide reciprocal support to
  U.S. forces. FM commanders must be aware of agreements with allies or HNs, which include reciprocal
  financial support as authorized by DOD Directive 5530.3. The FMSC director or account holder is
  responsible for obtaining copies of these agreements and disseminating them to lower elements. These
  agreements will be coordinated with the SJA for legal sufficiency prior to implementation. See DODFMR
  Volume 5 for additional information.
  SUPPORTING TASKS
  3-27. The following are performed under cash management/currency support:
  * Perform cash acquisition and cost analysis.
  * Perform cash holding analysis authority (USD and FC).
  * Document the applicable foreign currency market rates (e.g., Spot Rate is the price that is
  quoted for immediate settlement on a commodity, a security or a currency).
  * Determine the process and cost associated with acquisition and delivery of USD and local
  currency.
  * Obtain the budget rate for contracts paid in local currency.
  * Determine the availability of a foreign currency fluctuation account for local currency payments.
  * Determine the history, evaluation and inflation of U.S. currency in relation to the local currency.
  * Determine which mechanism can acquire foreign currency at a better rate: ITS.gov or an LDA.
  * Acquire and account for currency (USD and FC)/checks.
  * Dispose and report mutilated or damaged currency/checks.
  * Maintain and control agreements that support multinational forces, contractors, DA Civilians.