How do currency fluctuations affect sourcing costs, and what can I do to protect myself?

Currency swings can play havoc with sourcing costs, especially for longer contracts, but there are ways to manage the risk:

1. Currency Hedging: Work with partners like World First or similar financial services providers that can lock in exchange rates for up to two years, helping you manage costs and avoid surprises from currency swings.
2. Stick to Stable Currencies: Ask for pricing in widely used, stable currencies like USD or EUR to avoid volatility.
3. Monitor Exchange Rates: Keep an eye on currency trends and plan payments when rates are in your favor.
4. Budget for Fluctuations: Build a small buffer into your budget to account for potential shifts in exchange rates.