U.S. Dollar Devaluation Raises Costs of Some Church Programs

Devaluation of the United States dollar in February will mean a cost of living increase for many missionaries, as well as an increase in expenditures for some Church programs.

J. Alan Blodgett, comptroller and director of the Church’s Financial Department, reports that where U.S. dollars are used to augment local funds for such programs as building projects, the costs to the Church will be increased by approximately ten percent.

The devaluation, introduced to correct the balance of trade between the United States and other nations by making U.S. goods less expensive on the world market, has already caused some missionaries to check their budgets. According to a Salt Lake City bank official, as a general rule the American missionary dollar is worth ten percent less than it was prior to devaluation.

In some Central and South American countries, such as Mexico and Brazil, where there is an attempt to retain local currency on par with the U.S. dollar, devaluation may not be too noticeable. However, the situation differs from country to country. In Japan, the U.S. dollar decreased in value by as much as 13 percent. Italy devalued its currency along with the U.S. dollar, but the decrease in value in Germany, France, and Spain was significant.

It is recommended that prospective missionaries allow time for foreign currencies to stabilize in the post-devaluation period before trying to determine the rate of exchange.