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The foreign currency conversion blues |
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by
LawDotNews
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Published
2009/08/03 12:00:00 AM
(Viewed
659
times) |
When contracting in a foreign currency to be paid locally, specify how the conversion to Rand is to be effected.
Per a recent High Court decision, if you want to be paid at a particular rate, such as the selling rate rather than the buying rate, or at the Reserve Bank’s “indicative rate”, or at any other rate, you must record that clearly in your agreement. If you don’t, the party making payment can choose the conversion exchange rate to its benefit. And that could leave you seriously out of pocket - the difference claimed in the case in question was R426,240!
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