TCM0304450 - Specialist areas: international: miscellaneous: exchange rates - deciding
Background
This guidance confirms the correct currency exchange rate to use (for converting EU Member state’s currencies into sterling) when calculating supplements or reimbursements
If the period (of award which the supplement covers or alternatively, when the overpayment occurred) is before 1 May 2010, the relevant exchange rate as stipulated by Council Regulation (EEC) 574/72 is applicable
If the period (of award which the supplement covers or alternatively, when the overpayment occurred) is on or after 1 May 2010, the relevant exchange rates as stipulated by Council Regulation (EEC) 987/2009 are applicable
If the period effectively overlaps both 574/72 and 987/2009, you should:
- request the amount of family benefit paid (or overpaid if a reimbursement) by the EU Member State during the period that is covered under 574/72
- request the amount of family benefit paid (or overpaid if a reimbursement) by the EU Member State during the period that is covered under 987/2009
- convert the amounts using the respective exchange rates then add them together
Guidance
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Step 1
Check whether the supplement or reimbursement covers a period before 1 May 2010, or whether it overlaps both periods
If the supplement or reimbursement only covers a period before 1 May 2010, go to Step 3
If the supplement or reimbursement only covers a period on or after 1 May 2010, go to Step 2
If the supplement or reimbursement overlaps more than one period, go to Step 4
Step 2
Daily exchange rates are to be used for periods that run from 1 May 2010
If you are dealing with a reimbursement request dated between 1 May 2010 and 29 February 2016
- use the daily exchange rate published on the date the EU Member State sent their initial request for reimbursement
- when conversions are complete, continue with normal reimbursement action
If you are dealing with a reimbursement request dated on or after 1 March 2016
- use the working day immediately preceding the day the EU Member State sent their final request for reimbursement
- when conversions are complete, continue with normal reimbursement action
If you are dealing with a supplement request dated on or after 1 May 2010
- use the daily exchange rate published on the first day of the month immediately prior to the month when the provision must be applied
- when conversions are complete continue with normal supplement action
Step 3
Obtain the amount of family benefit paid (or overpaid if a reimbursement) by the EU Member State for the period before 1 May 2010. The foreign currency needs to be converted to sterling. When calculations are calculated in:
- April, May or June, the quarterly rates published for the previous January should be used
- July, August or September, the quarterly rates published for the previous April should be used
- October, November or December, the quarterly rates published for the previous July should be used
- January, February or March, the quarterly rates published for the previous October should be used
Note: when conversions are complete, continue with normal supplement/reimbursement action
Step 4
When the supplement or reimbursement overlaps more than one period, you may have multiple amounts to convert to sterling
- add the amounts together
- when conversions are complete, continue with normal supplement/reimbursement action