Forex: Payments Over Varying Periods

To see why the procedure of the examples is not always the way to handle the foreign currency problems or why it may not be practical, it would not hurt to examine the assumptions, some expressed, some tacit, on which the transactions were based.

To start with, it was assumed that the transaction was entered into at a particular moment in time. That is fine for an order received on a particular date to be filled out of inventory and delivery within a fixed period. But what about the situation in which it is necessary to quote prices in another currency subject to the customer's acceptance?