2 Brume SA (France) considers importing its supplies from either Switzerland (denominated in Swiss francs) or South Africa (denominated in rand) on a monthly basis. The quality is the same for both sources.

Once the firm completes the agreement with a supplier, it will be obliged to continue using that supplier for at least three years. Based on existing exchange rates, the euro amount to be paid (including transportation costs) will be the same. The firm has no other exposure to exchange rate movements.

Given that the firm prefers to have less exchange rate risk, which alternative is preferable? Explain.