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For an exporter, how do you manage receivables in different currencies?

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Question added by Tariq Farook Somar
Date Posted: 2016/04/04
Melvin Peiris
by Melvin Peiris , Tax Consultant , Ethical Accounting and Taxation Servises

1. Selling abroad in local currency (saler's currency) will be the best tool in managing foreign ex risk

2. It is advisable to invoice in buyer's currency if it leads to boost sale volume, But you must know how to manage exchange risk and its effect on accounting system. Forward contract may minimize any exchange losses where low interest rate will give low premium

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