A Weak Currency Can Turn a Full Warehouse into a Margin Emergency

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The importer agrees on a selling price in shillings and pays the supplier in dollars. Between the quotation and settlement, the exchange rate moves. Nothing changes inside the warehouse, yet part of the expected profit disappears.Take an illustrative order costing $10,000. At KSh130 per dollar, its purchase cost is KSh1.3 million.

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