|
Telecom Letter Decision
|
|
Ottawa, 22 June 1990
|
|
Telecom Letter Decision CRTC 90-10
|
|
Mr. Jules Lemay Director Regulatory and Corporate Analysis Corporate Affairs Group Teleglobe Canada Inc. 680 Sherbrooke Street West Montréal, Quebec H3A 2S4
|
|
Dear Mr. Lemay:
|
|
Re: Procedure to Approve Exchange Rates for Budgeting Purposes
|
In Telecom Decision CRTC 89-1, Teleglobe Canada Inc. - Rate Stabilization Account and Rate of Return over the Transitional Period, 31 January 1989 (Decision 89-1), the Commission stated that it would hold discussions with Teleglobe in order to set up administrative procedures for the approval of budgeted exchange rates. Such procedures would provide for Commission approval of budgeted exchange rates prior to the start of each fiscal year.
|
|
After the discussions mentioned above were held, Teleglobe filed with the Commission, on 28 February 1990, an application requesting approval of a process whereby the Commission would approve exchange rates for Teleglobe's budgeting purposes for 1991 and following years. In its application, the company proposed to submit to the Commission on or about 1 July of each year, a list of the sources of external forecasts that it will use to calculate the annual budgeted exchange rates; a calculation of preliminary exchange rate forecasts using the data available from these sources at that time; and the expected publication dates of the data to be used in the final forecast.
|
|
Under Teleglobe's proposal, the Commission would review the methodology and sources of data to be employed by Teleglobe. Once any concerns that the Commission had regarding the company's submission were satisfied, it would approve the proposed methods and data sources. Following this approval, the company would file by 1 November, a written report showing the forecast exchange rates to be used in its budget view for the coming year. These final exchange rate forecasts would be based on the Commission's approved methodology and sources and would incorporate the most recent data available.
|
The Commission has reviewed Teleglobe's proposals. In its view, adopting the company's proposal will streamline the process of approving exchange rates for budgeting purposes as contemplated in Decision 89-1. The Commission considers that the company's proposed approach will improve the forecasting of exchange rates and will ensure that the exchange rate forecasts reflect current trends in foreign exchange and capital markets.
|
|
In view of the foregoing, Teleglobe's application is approved.
|
|
Alain-F. Desfossés
|