GoFuckYourself.com - Adult Webmaster Forum - View Single Post - USD down 42% 2001-2011 against SEK.

Adraco · 03-24-2011, 08:02 AM

This shows clearly why you should always try to have your major costs in the same currency as your main income. Because otherwise you take on a huge currency exchange risk.

Say you had a server in Sweden but income in USD and the server costed you 100 SEK per month (in 2001 say $10)

So now, your server still costs 100 SEK but you would now have to pay ~$15 since it's now at around 6 SEK per USD or something.

Clearly shows what risks are involved in doing cross border businesses. It can of course go the other way around too, so it's a game of ups and downs.

03-24-2011, 08:02 AM
Adraco Confirmed User Industry Role: Join Date: May 2009 Location: Onboard an airplane around the globe Posts: 3,734	This shows clearly why you should always try to have your major costs in the same currency as your main income. Because otherwise you take on a huge currency exchange risk. Say you had a server in Sweden but income in USD and the server costed you 100 SEK per month (in 2001 say $10) So now, your server still costs 100 SEK but you would now have to pay ~$15 since it's now at around 6 SEK per USD or something. Clearly shows what risks are involved in doing cross border businesses. It can of course go the other way around too, so it's a game of ups and downs. __________________ ---------------------------------------------------------------------------------- The truth is not affected by the beliefs, or doubts, of the majority.