Quote:
Originally Posted by calf
Pretty much. Plus, TSB might very well have a USD account that they hold cash in to make purchases...so, having cash come in and out in USD is easier to price and manage...then your only worry is the FX rate when you take the money out of the business (or if you have to fund the account), rather dealing with the FX rate for each transaction that has or may happen.
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For any importer or exporter (or any business that has expenses in a different currency than revenues), you're going to have currency risk. And that currency risk is there every day, whether you change your prices or not. Simply having a USD bank account won't negate that.
As BigNumbers said, you can hedge your risk (and should), but that is complicated by timing and uncertainty of cash flows and isn't always as cut and dried as he/she suggests.