Currency of Choice

The London Company of Friends group is currently discussing an interesting question on their mailing list: When working with international clients, whose currency do you invoice using? Invoicing in your local currency may mean that your partner bears the exchange rate risk. Yet invoicing in their currency means that you bear the load. Any experiences or advice to share?

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1 Comments

  • Mike

    It depends which party is the bigger basically, until such point that the efficiency savings of dealing in a single currency outweigh the flexibility of multi-currency.

    Of course there is also the 3rd party currency option. An interesting case in this is Airbus which apparently sells its aircraft in US$ despite sizable market power of the ÔŽímp;#8218;. The effect of the recent US$ decline has been to push breakeven on the A380 project back many months or years.

    Any sane business would surely prefer to price in the same currency as its inputs though.