Can I require payment in U.S. dollars in order to avoid foreign exchange risk?
You may require payment in U.S. 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. To prevent this, you might want to look at other options such as forward contracts and currency options designed to hedge your exposure to exchange risk, making it possible to offer more attractive terms to your buyer. For more information, contact our Foreign Exchange Group.
