Buyers face currency conundrum

10 August 2009
I came across this article on the BBC recently about how many UK businesses are accepting the euro. It got me thinking if this would be of use to buyers. Accepting foreign currency payments shouldn't be a problem for any modern business. In fact, the benefit to buyers could come from paying vendors in a different currency. We have seen defence firm EADS pay its suppliers in dollars to get a better deal in the past. And when the dollar was weak, supermodel Gisele Bündchen allegedly preferred to be paid in Euros. Switching to pay a supplier in euros at the moment would probably not be such a great idea considering the weakness of sterling. But having the ability to switch between currencies to favour your business could be an advantage. But you have to be careful. I doubt very much any supplier will take kindly to being paid in Guatelmalan quetzals simply because it offers the buyer a better rate.
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