Purpose

Purpose. The adoption of rules is necessary for selection of an institution to handle foreign currency acquisition and distribution for the Department of Economic and Community Development. Pursuant to §25-43-7 and §25-43-9 Mississippi Code of 1972, annotated, the Office of the Treasurer submits proposed rules covering the selection process for an international banking establishment to handle foreign currency exchange and distribution for the following reason: Losses of 20% in currency exchange transactions have occurred in prior years and such transactions have been significant enough to utilize the services of a large international banking institution to manage the acquisition and distribution of foreign currency. The immediate implementation of this management practice will minimize potential losses by making forward purchases of currency or other contracts aimed at cutting significant monetary losses.