Currency Risk
Category: Finance
Definition (plain English)
The risk that exchange-rate movement between quote, PO, shipment, invoice, and payment changes cost, margin, or cash requirement.
Why it matters commercially
Currency movement can turn a safe import margin into a loss, especially when supplier currency, sell currency, and payment timing do not match.
Example
A buyer priced in EUR from a USD supplier, then the dollar strengthened before balance payment and wiped out most of the planned gross margin.
Common mistake
Locking a sell price from the current spot rate without a buffer, re-quote trigger, hedge decision, or owner for FX movement before payment.
Use this in CommerceKit
Landed Cost
Use tool →Target Buy Price Calculator
Use tool →Currency Exposure & FX Buffer Calculator
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