ABSTRACT
If the currency in a contract between Owner and Contractor is different from the currency in a contract between Contractor and his Vendor, then there is a possibility for currency risk and related loss to the Contractor when the currency fluctuations occur to Contractor’s disadvantage in the currency exchange market at the time his making payment to his Vendor. To eliminate any financial loss thereof due to currency fluctuations, Contractor can enter into a forward contract with a hedging company soon after his entering into contract with Owner.
