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⍰ ASK What role does currency exchange play in offshore transactions?

In offshore deals currency exchange is key for trading between different countries. Parties from different places use their own money so they need to swap currencies based on current rates.

This lets businesses operate in various currencies, reaching global markets. But there a risk because change in rates can affect deal value and profits.

Smart companies use strategies like forward contracts to manage this risk and avoid losses from currency ups and downs.
 

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