Put it into practice.
A US company that owes a fixed euro amount needs more dollars if the dollar weakens against the euro. Matching currency receipts and payments can reduce exposure; hedging also has costs and conditions.
A common mistake
A currency move has different effects on importers, exporters, and firms with foreign-currency debt. State whose currency strengthens and which obligation is fixed.
Original independent study explanation. Revised October 2026. Practice assumptions are illustrative.