Fluctuating exchange rates can impact the profitability of many Australian companies. Any business that buys or sells goods to a supplier or customer in another country is exposed to foreign exchange risk. For a business that transacts in Foreign Currency this can have a major impact on cash flows.
What does this mean for importers and exporters?
Questions for consideration
- Is your business exposed to a floating exchange rate? Does the business need to hedge its foreign exchange exposure?
- What are the key drivers of your business?
- What if cost of importers goods increases and price increases cannot be passed onto consumers?
