If the U.S. dollar rises in value in the future, U.S. dollars will be worth more relative to foreign currency and the foreign currency is worth less compared to the dollar. Therefore the company will want to get as many dollars as possible now so that they will increase in value while they are being held and the company will want to keep the dollars that they have to use to pay the foreign denominated payables when the dollar is stronger. Therefore, they should speed up collections and slow down payments.
If the U.S. dollar rises in value in the future, U.S. dollars will be worth more relative to foreign currency and the foreign currency is worth less compared to the dollar. Therefore the company will want to get as many dollars as possible now so that they will increase in value while they are being held and the company will want to keep the dollars that they have to use to pay the foreign denominated payables when the dollar is stronger. Therefore, they should speed up collections and slow down payments.
If the U.S. dollar rises in value in the future, U.S. dollars will be worth more relative to foreign currency and the foreign currency is worth less compared to the dollar. Therefore the company will want to get as many dollars as possible now so that they will increase in value while they are being held and the company will want to keep the dollars that they have to use to pay the foreign denominated payables when the dollar is stronger. Therefore, they should speed up collections and slow down payments.
If the U.S. dollar rises in value in the future, U.S. dollars will be worth more relative to foreign currency and the foreign currency is worth less compared to the dollar. Therefore the company will want to get as many dollars as possible now so that they will increase in value while they are being held and the company will want to keep the dollars that they have to use to pay the foreign denominated payables when the dollar is stronger. Therefore, they should speed up collections and slow down payments.
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