 The global economy dictates that increasingly more business is conducted with organisations abroad. This may be exporting or importing.
Consequently the business owner will most probably be involved in receiving or paying for goods and/or services in a foreign currency. Such foreign exchange transactions may be experienced regularly or may be a one-off.
In all foreign exchange transactions there is a risk to the profitability of the business .
This arises from the continual movement in the exchange value of a currency against others. The impact (good or bad) on a business of trading abroad in a foreign currency should be understood and factored into business forecasts.
Other Items of Interest:
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Foreign Exchange