The currency on an invoice is the one favoured by a company for billing its customers. The company can choose the currency of its country of residence (Producer Currency Pricing in English, or PCP), the currency of the customer (Local Currency Pricing, or LCP), or a motto "vehicle" (most often the dollar, DCP ). I would like to use French Customs data and business balance sheets to study the factors that may explain the choice and effects of using different currencies in global trading. The main objective of the research is to evaluate how the cash flows and investments of similar companies that choose different billing currencies can be affected after major exchange rate changes or during a recession. Companies with liquidity limits can be particularly affected.
Effects of the invoice currency on cash flow and investments
Data provided through CASD (8)