Many businesses will manage their currency invoice by invoice.

While a currency plan to manage this committed exposure will provide cashflow certainty and protect profit margins for the short term, the business may still experience exposure risk if the sale price cannot be adjusted frequently.

Many businesses will forecast their currency requirements for the next 6 – 12 months and then adopt a currency plan to hedge a percentage of this exposure on an ongoing basis.

It is important to note that the forecast is an estimate and will likely change over time and so the hedge amount should not be too high.