WHAT'S HAPPENING NOW:
SUBSCRIBE TO MAGAZINE
Exhibiting &
Event Topics
EXHIBITOR
Magazine
Find It
Marketplace
EXHIBITOR
LIVE
EXHIBITOR
Education Week
EXHIBITOR
eTrak
CTSM
Certification
EXHIBITOR
Insight
EXHIBITOR
Awards
News
Network
Advertise
With Us
Topics
International
Exhibiting
Global
Guide
How-To
Tips
International
Exhibits
International
Events
exhibitor q&a
Help!
Currency Exchange
ILLUSTRATION: MARK FISHER
Q.
My company plans to exhibit internationally in 2018. How can I safeguard our budget's accuracy in the face of continual currency fluctuations?

A.
There's little you can do about currency fluctuations or what causes them. However, there are a couple of ways to protect your ability to budget accurately.
➤ Secure quotes in U.S. dollars. One way to avoid dealing with a foreign currency is to have your international exhibit house and service suppliers provide all quotes and invoices in dollars. Not all of them will grant this request, but when they do, any potential currency risk will be on the supplier side of the equation.
➤ Read the fine print and lock in. Some firms will list an exchange rate as part of the price quote, along with a stipulation that the price could increase if the currency rate changes. So request that once you sign the agreement, all costs are locked in at the agreed upon rate, thus eliminating the chance of surprises at the close of the show.
➤ Tack on a buffer. For all services for which suppliers are unwilling or unable to quote you in U.S. dollars, figure some wiggle room into your budget. With every figure you're given, take the current day's exchange rate and add .03 to it. For example, if the rate is 1.09 euros to the dollar, use 1.12. Even if the market inches up against you a bit, your padded budget should be able to take the blow and remain unscathed.
➤ Hedge the exchange rate. If you have a large project overseas and expect to pay for goods and services in the local cash currency, you may want to look into hedging the currency. This means that you monitor the exchange rate, wait until it's in your favor, and buy currency from the bank in advance of the event. By doing so, you are guaranteed a specific rate, so you don't have to worry about the fluctuations negatively impacting your budget. If you are working on a show a month out, the currency will likely not fluctuate all that much, and hedging may not be necessary. But this strategy can be very helpful if you are planning a large show several months in advance, as a sizable time span provides ample opportunity for wider currency swings.

— Lorraine Lorenzini, global client solutions director, Freeman XP, Avon, MA
Help Wanted
Send your tough questions about exhibiting to Linda Armstrong, larmstrong@exhibitormagazine.com.

you might also like
 
Join the EXHIBITOR Community Search the Site
TOPICS
Measurement & Budgeting
Planning & Execution
Marketing & Promotion
Events & Venues
Personal & Career
Exhibits & Experiences
International Exhibiting
Resources for Rookies
Research & Resources
MAGAZINE
Subscribe Today!
Renew Subscription
Update Address
Digital Downloads
Newsletters
Advertise
FIND IT
Exhibit & Display Producers
Products & Services
All Companies
Get Listed
EXHIBITORLIVE
Sessions
Certification
Exhibit Hall
Exhibit at the Show
Registration
ETRAK
Sessions
Certification
F.A.Q.
Registration
EDUCATION WEEK
Overview
Sessions
Hotel
Registration
CERTIFICATION
The Program
Steps to Certification
Faculty and Staff
Enroll in CTSM
Submit Quiz Answers
My CTSM
AWARDS
Sizzle Awards
Exhibit Design Awards
Portable/Modular Awards
Corporate Event Awards
Centers of Excellence
NEWS
Associations/Press
Awards
Company News
International
New Products
People
Shows & Events
Venues & Destinations
EXHIBITOR News
© Exhibitor Group | The Leader in Trade Show and Corporate Event Marketing Education PO Box 5996, Rochester, MN 55903-5996 | (507) 289-6556 | Need Help? Ask Scott