One Business, Multiple Currencies — Why Companies May Need EUR, USD and GEL

Using several currencies within the same company is increasingly common. As soon as a business begins working with international customers, suppliers or service providers, different currencies can become part of its everyday operations.

A company may receive revenue in euros, pay a supplier in US dollars and cover most of its local operating expenses in Georgian lari.

In this environment, currency exchange for businesses is no longer an isolated transaction. It becomes a natural part of international business activity.

How can one company need three currencies at the same time?

Consider a company operating in Georgia with customers across several European markets.

The company may receive payment for its products or services in EUR. Part of its revenue therefore arrives in its euro-denominated bank account.

At the same time, the company may work with an overseas supplier issuing invoices in USD. These dollar-denominated payments could relate to inventory, raw materials, equipment, logistics, software or another international service.

Much of the company's day-to-day activity, however, takes place in Georgia. Local contractors, transportation, office-related expenses and many other operating costs are generally settled in GEL.

The same business may therefore use:

• EUR — for revenue received from international customers;
• USD — for payments to overseas suppliers or business partners;
• GEL — for everyday operating expenses in Georgia.

This is only one possible scenario. The actual combination of currencies depends on the company's industry, customers, suppliers and international relationships.

It is not limited to importers and exporters

Working across several currencies is often associated with importing and exporting, but international payments now appear in many different business models.

An importing company may purchase inventory in USD while generating most of its local sales revenue in GEL.

An exporter may receive revenue in EUR or USD while requiring GEL to cover operating expenses in Georgia.

Technology, consulting and professional-services companies can receive payments from foreign clients while simultaneously paying for international software, platforms and other services.

Businesses operating in logistics, hospitality, manufacturing, wholesale or construction may also encounter several currencies through customers, suppliers, contractors and international partners.

Where does currency conversion enter the process?

When revenue, expenses and international obligations are denominated in different currencies, one currency may eventually need to be converted into another.

For example, a business may need to:

• convert part of its EUR revenue into GEL for local expenses;
• convert GEL or EUR into USD to settle an overseas supplier invoice;
• exchange one foreign currency directly into another;
• obtain the currency required for a specific international transaction.

At that point, the exchange rate becomes part of the underlying business transaction. The larger the conversion, the more noticeable even a relatively small difference in the rate can become in the final amount received or paid.

International business no longer means only moving physical goods

A company may need foreign currency even when no physical product crosses a border.

International payments can relate to:

• software and SaaS subscriptions;
• consulting and professional services;
• advertising and digital platforms;
• international logistics;
• technical services;
• foreign contractors or business partners;
• payments received from international customers.

As a result, several currencies may appear simultaneously across different parts of the same company's operations.

Online currency exchange for businesses

When company funds are already held in a bank account, currency conversion can also be completed online.

With FXHUB, legal entities registered in Georgia can select the currency they want to sell and receive, enter the amount and view the applicable exchange rate before completing the transaction.

The currency exchange service does not include an additional commission. For higher-volume transactions, companies can also request an individual exchange rate, with the specific offer depending on the transaction and amount.

Registered FXHUB users that regularly work across currencies can also access their transaction history and related receipts through their account.