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    Foreign Exchange Question

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    A US Importer owes a Belgian Company ? 500,000 payable 30 days from today, expects that the US $ will weaken during this period.
    a‐ What would you advise the importer to do?
    b‐ What would happen to the profits of the US company if the $ were to strengthen during this period?

    Can anyone help with this problem?

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    Solution Preview

    Hi there,

    Here are your answers:

    a) I would advise the importer to pay their bill as soon as possible. The longer that they wait to ...