Salans is protecting itself against the increasingly weak US dollar by changing the majority of its offices’ billing to euros.
The international firm, which has offices in the UK, US and Continental and Eastern Europe, as well as Russia, Turkey and the Middle East, uses the dollar as its functional currency.
To protect partners against the negative impact of a weak US dollar the firm has been shifting its billing currency in a large number of its offices to the euro. In London, the pound sterling remains the billing currency.
Finance director Neil Woodcock said: “We ensure that, wherever we’re operating, we bill in a currency that’s at least as strong as our expenses.”
Partners are paid in the currency of their local jurisdiction, although points are calculated in dollars and adjusted according to the exchange rate.
Woodcock said Salans has traditionally billed clients in Russia in dollars, as that was the currency in which expenses were paid. However, recently the dollar has weakened against the rouble, despite extremely high interest rates in Russia.
“It’s going to be interesting to see how that evolves,” said Woodcock.