Foreign Exchange Precautions for Exporters

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Canada perspective: Virtually every business in Canada is affected by the ever-changing value of the dollar. While many of us consider this unpredictability a nuisance, the volatility of the Canadian dollar and other currencies around the world can mean the difference between success and failure for many exporters.

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United States perspective: Exports are improving. The Bush administration hopes a falling dollar will boost export trade by making U.S. exports cheaper for foreigners and goods made abroad more expensive for Americans. The dollar began falling late last year. Since the start of April, its drop has accelerated against a variety of currencies, from the euro to the yen.

Bottom line: Understanding foreign exchange risk is critical to any export venture.