Question

UAE business pays SAR 72,400, SAR 65,300, and SAR 84,700 to suppliers in, respectively, Japan, Switzerland and Canada. Payments to the Japanese and Canadian suppliers is due in 90 days. The Swiss supplier is due in 30 days. How much, in local currencies, would the suppliers receive? DATA Saudi business pays in SAR: Japanese payment Swiss payment Canadian payment 74,000 63,500 84,700 In local currency: a) Japanese yen b) Swiss francs c) Canadian dolars

Answer 1

As on April 9th, 2019, foreign exchange rates are as follows:

SAR to JPY = 29.67

SAR to CAD = 0.35

SAR to Swiss Franc = 0.26

Following table shows the amount in local currency after applying the exchange rate:

SAR Exchange Rate Local Currency 29.67 0.35 0.26 a) Japanese Yen74,000 b) Swiss Franc 21,95,580 22,225 22,022 63,500 c) Canadian Dollars 84,700

These will be the amounts that the suppliers would receive in local currency.

NOTE : Since, I do not have information about forecasted exchange rates 90 or 30 days ahead, I have used current exchange rates for the calculation.