Moving Average Rate Procedure

Method for converting currency in development cooperation.

The Moving Average Rate Procedure is a tried and tested method in development cooperation for converting currency used in projects (voucher currency) into the currency of the financial administration of head offices (company currency).

Originally developed by the GIZ in the 1980s on behalf of the German Federal Ministry for Economic Cooperation and Development (BMZ) for the purpose of settling funds, this method is now used by numerous implementing organisations and accepted by many donors.

Success factor for WINPACCS

This procedure ensures there are no gains or losses due to fluctuations in exchange rates. The funds made available are converted into costs to the full equivalent amount in local currency. WINPACCS and its predecessor PACCS have always incorporated the Moving Average Rate Procedure.

This automated and transparently integrated procedure is one of WINPACCS key success factors.

Automatic calculation of the company currency

For postings in the Project accounting, the amount is entered in voucher currency and the equivalent value in company currency is calculated using the current average rate.
Certain postings – for instance a supply of funds – lead to an automatic recalculation of the average rate.
For all postings, the respective posted amount can always be seen in company currency and voucher currency.

Deepen your knowledge

More details on this method can be found in our White Paper: Moving Average Rate Procedure.