Currency and Exchange-Rate Basics for Global TradesFolks Transactions
Global marketplace records should preserve the actual ISO currency of the commercial document. Converted values are useful for comparison but should not replace the original amount.
Actual transaction currency
- Record the currency stated in the quotation, order or invoice.
- Avoid assuming every amount is INR, USD or another default currency.
Conversions
- Use a dated exchange rate if you need a reporting or comparison value.
- Expect conversion providers and card/bank settlement rates to differ.
- Label converted values as estimates where appropriate.
Commercial comparison
- Compare total landed cost, not only converted unit price.
- Consider bank fees, taxes, duties and currency risk for international purchases.
Frequently asked questions
Why can a converted value change?
Exchange rates fluctuate and providers may use different spreads or fees.
Which currency should the invoice use?
The currency agreed for the transaction and shown in the commercial documents.
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