Can I require payment in Canadian dollars in order to avoid foreign exchange risk?
You may require payment in Canadian dollars, but it is important to recognize that in doing so you are passing that foreign exchange risk on to your trading partner. In competitive markets, forcing your buyer to assume additional risk may make your products less attractive, so you might want to look at other options. Financial instruments like forward contracts and currency options are designed to hedge your exposure to exchange risk, making it possible to offer more attractive terms to your buyer. Check our section on Foreign Exchange for more information, or contact our trade team.
