Euro in, lei out
Receipts in euro, costs in lei
Salaries, rent and local suppliers are paid in lei. The question is how much of each euro receipt to convert, and when, so your lei budget holds.
For exporters
You receive euro. Your costs are in lei.
The rate on any one day matters less than what your foreign-currency receipts are worth in lei when your lei costs fall due. That depends on timing, on what you still owe in the same currency, and on how certain each receipt is.
Three common shapes
The same mismatch, three ways
Exporters rarely have one currency coming in and one going out. Where you sit changes which question comes first.
Euro in, some euro out
Some suppliers are paid in euro too
Part of what comes in is already spoken for. Keeping the euro you need for suppliers, and converting only the remainder, leaves a smaller exposure, but only if the dates line up.
Several currencies
Suppliers invoice in other currencies
Euro comes in, but some suppliers invoice in another currency and local costs are in lei. Each pair is its own mismatch, with its own dates.
Converting a receipt
What to settle before you convert
A spot conversion agrees an exchange rate for one conversion, settled on a stated date. These points apply whoever you convert with.
Say it from your side
You sell euro and receive lei. Then the amount, which currency that amount is in, and the date the lei need to be in your account.
What makes a quote a quote
A usable rate comes with a time, a direction, an amount, a settlement date, the fees and how long it stands. A reference rate on a screen is not something you can deal at.
Compare the lei you receive
When you sell euro, the comparison that matters is the net lei received after all costs, for the same amount on the same date. A rate you were given last month is not a like-for-like comparison with a quote today.
Account details are not speed
Where your customers pay into can help with their familiarity and your reconciliation. It does not by itself make the money arrive sooner.
Illustrative figures
Two worked examples, with made-up numbers
Every number below is hypothetical. None is a current market rate, a quote or an outcome any company has had. The examples show how to read a flow, not what to do with it.
Illustrative only
This shows sensitivity: how much the lei value of one receipt moves with the rate. It is not a forecast of where the rate will go and not a recommendation to convert at any time.
How much a small move is worth
| At 5.00 lei per euro | RON 500,000 |
|---|---|
| At 4.95 lei per euro | RON 495,000 |
| Difference | RON 5,000 |
Illustrative only
The remainder is only usable if the receipts arrive before the payments fall due and sit in the same company. An annual total can look comfortable while next month runs short. It is not, by itself, an amount to fix in advance.
What is left after euro payments
| Euro receipts | EUR 150,000 |
|---|---|
| Euro supplier payments | − EUR 30,000 |
| Remainder, before other euro obligations | EUR 120,000 |
Planning for future receipts
Fixing a rate for a receipt you expect
A fixed-date forward is an agreement to exchange a set amount of one currency for another at an agreed rate on a future date. For an exporter it can make the lei value of a known future receipt easier to put in a budget.
It is about predictability, not a better price. If the rate moves your way, converting later at spot could have given you more lei, and the forward still has to be honoured. The difference between a forward rate and today's rate reflects market conditions for that currency pair and date; it is not a gain.
It also does not protect you from your customer. If the euro arrives late or not at all, the forward still falls due on its date, and you may need to fund it another way.
So the first question is how certain the receipt is: an issued invoice on agreed terms, or an order you expect.
Your receipts
What part of your euro do you convert, and when are your lei costs due?
That one answer shows most of the picture. Rough figures are enough.
The chat assistant is automated. If you would rather hear from a person, say so in the chat or use the contact form.
- What comes inThe currency your customers pay in, and roughly how often.
- What goes out in the same currencySupplier payments you already make in euro.
- What you need in leiThe costs you convert for, and when they fall due.