Dealing with the risk of currency fluctuations in international projects

Various ways to deal with the risk of currency fluctuations in international projects are discussed. For transaction exposures, the duration of currency risk exposure depends on the length of time between fixing of prices and when payment is made. As can be expected, the longer the duration of exposure to risk, the greater the chance that things can change. Once the currency risks inherent in a project have been identified, it is possible to decide on the appropriate management of these risks.