Cross-Currency Cash Flow

Cross-currency cash flow refers to the movement of money between different currencies resulting from international transactions or investments. For example, a business based in the U.S. earning revenue in euros or a UK company paying suppliers in Japanese yen. These cash flows require currency conversion and may be affected by exchange rate fluctuations, impacting the actual amount received or paid. Managing cross-currency cash flows is essential for companies operating globally, to optimize financial efficiency and minimize risks associated with currency value changes.