Foreign exchange ratesdirectly influence thecost of imported goods and services. Currency fluctuations can affect total expenditure, supplier margins, and ultimately the buyer's profitability. Even if payment is in local currency, suppliers may adjust their pricing to mitigate foreign exchange risks.
"Foreign exchange volatility can significantly impact pricing in international procurement. Buyers must assess currency risks as part of their cost evaluation and strategic preparation." (L4M5 Commercial Negotiation, 2nd edition, Section 2.2 - Macroeconomic Considerations in Pricing)