Export vs Domestic Stocks

Currency exposure depends on revenue, input costs, debts and the rates actually used in settlement. An exporter is not automatically helped by every local-currency depreciation: imported inputs, lower world prices or collection restrictions can offset higher converted revenue. A domestic business can also have foreign-currency costs. Read the company’s filings and operating volumes rather than applying a permanent “dollar stock” label. Separate translation of accounts from cash received and distinguish gross revenue from profit.

Worked example (hypothetical)

Export receipts of $1 million at 600,000 rial per dollar equal 600 billion rial. At 660,000 they become 660 billion, but imported costs of $400,000 also rise from 240 to 264 billion. The net increase before other costs is 36 billion.

Check your understanding

Can a company use a different FX segment from a street cash quote? Yes. Inspect the rate and timing used for its actual revenues and expenses.

Sources, reviewed 5 October 2026

• Beginners’ Guide to Financial Statements
• Review of the Fund’s Policy on Multiple Currency Practices