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How can I handle exchange rate risk? | Ask An Expert | Bayzat SME Hub

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Feb 21

How can I handle exchange rate risk?

1 comment
Feb 24

If you’re billing in your customer’s currency, then you may be affected by exchange rates. If your home currency falls against theirs, you’ll end up getting less for your goods.

 

Small businesses generally either:

  • Accept the going rate on the day payment is made, knowing there will be ups and downs

  • Get forward cover through their bank

Don’t forget that the UAE dirham (along with most GGC countries) is pegged to US dollars therefore you won’t have much foreign exchange risk when transacting in this currency.