ZhilianhaiCurrency and Import Cost Effects
Where the exposure sits
| Stage | Exposure |
|---|---|
| Quotation | Currency and validity period |
| Ordering | Movement between quote and purchase order |
| Manufacturing | Long lead items and staged payments |
| Import | Duties, freight and tax |
| Spares | Recurring exposure over the life of the asset |
Managing it
- Ask for a stated validity period and a currency clause.
- Consider matching the order currency with your revenue currency.
- Include spares pricing currency in the service agreement.
Currency risk management is a financial decision. Take advice for large commitments.