Leads And Lags

Leads and lags in international business most commonly refers to the alteration of normal payment or receipts in a foreign exchange transaction based on an expected change in exchange rates. When a corporation or government entity has the ability to control the schedule of payments being received or being made, then that organization may opt to pay earlier than scheduled or delay the payment later than scheduled. These changes would be made in anticipation of capturing the benefit from a change in currency exchange rates. These dynamics hold true both for small and large transactions.