A seller who quotes on open account terms in a foreign currency bears the currency risk during the open credit period.

Question

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When a seller quotes on open account terms in a foreign currency, they do bear the currency risk during the open credit period. This is because they will receive payment in a foreign currency, and any fluctuations in the exchange rate between the foreign currency and their own currency can impact the value of their payment.

A Seller Who Quotes on Open Account Terms in a Foreign