THE BLUE HIGHLIGHTED RESPONSE WAS INCORRECT.

Why is the exchange rate in a foreign contracting so important? Foreign exchange rates regularly change. Those fluctuations will not impact an existing contract. Foreign exchange rates regularly change. Those fluctuations could make your work worthless. Contracts should be negotiated to reflect "current dollar" exchange rates. Foreign exchange rate fluctuations are unimportant, as timing the market is next to impossible for all parties concerned. Adjustments for currency exchange rate changes are excluded from net income for those fluctuations that do not impact cash flows and are therefore ignored