How do changes in exchange rates affect results?
PotashCorp and our operating subsidiaries have the US dollar as their functional currency and virtually all of our sales are in US dollars. We produce in Canada and Trinidad, in addition to the United States, which gives us exposure to fluctuations in the value of currencies of those countries against the US dollar. Our largest currency exposure is related to our Canadian potash operations, which primarily affects potash operating costs and royalty taxes. As the Canadian dollar strengthens, our operational costs go up.
Related Questions
- Do changes to APC rates, exchange rates and/or institutional membership status affect the amount payable for a submitted article, if it goes on to be published?
- How do changes in interest rates, inflation, productivity, and income affect exchange rates?
- How do changes in exchange rates affect results?
