Choice of currency
Suppliers, property owners or locally recruited staff may ask:
- Either to be paid in hard currency.
- Or that contracts are expressed in hard currency even if payment is actually made in the local currency.
There are potential problems in agreeing to either because:
- It may not be legal.
- Your organisation may in time pay above market rates if the local currency is devalued or loses value rapidly.
- There may be disagreement over which exchange rate to use when calculating amounts due.