Currency conversion clause: Copy, customize, and use instantly
Introduction
A currency conversion clause establishes the terms for converting currencies in agreements involving payments or transactions across different currencies. This clause ensures that both parties understand how currency exchange rates will be determined and how any fluctuations in currency values will be handled.
Below are templates for currency conversion clauses tailored to different scenarios. Copy, customize, and insert them into your agreement.
Standard currency conversion clause
This version includes basic provisions for currency conversion.
Any payment due under this Agreement shall be made in the currency specified in this Agreement. If the payment must be converted into another currency, the exchange rate used shall be the rate published by [designated authority, e.g., a central bank or financial institution] on the date the payment is due.
Currency conversion clause with provision for exchange rate fluctuation
This version applies to exchange rate fluctuation.
If the exchange rate between the currencies specified in this Agreement fluctuates by more than [X]% between the date of agreement and the date of payment, either party may request a renegotiation of the payment amount to reflect the new exchange rate. The exchange rate used for conversion shall be the prevailing rate at the time of payment.
Currency conversion clause with provision for fixed exchange rate
This version applies to a fixed exchange rate.
The parties agree that for the duration of this Agreement, the exchange rate for converting between [currency A] and [currency B] will be fixed at [rate]. Any payment under this Agreement will be made using the fixed exchange rate, regardless of fluctuations in the market rate.
Currency conversion clause with provision for bank’s conversion rate
This version applies to a bank’s conversion rate.
If any payment under this Agreement requires a currency conversion, the exchange rate shall be the rate charged by [specific bank or financial institution] on the day the payment is processed. The receiving party is responsible for any additional fees associated with the currency conversion.
Currency conversion clause with provision for periodic adjustments
This version applies to periodic adjustments.
In the event that currency conversions are required at regular intervals throughout the term of this Agreement, the exchange rate shall be adjusted every [time period, e.g., monthly] using the rate published by [designated authority] as of the last day of the applicable period.
Currency conversion clause with provision for third-party exchange service
This version applies to a third-party exchange service.
The parties agree that any necessary currency conversion will be carried out by a third-party exchange service, and the exchange rate used will be the rate offered by the third-party provider at the time of conversion. All associated transaction fees will be borne by the paying party.
Currency conversion clause with provision for market-based exchange rate
This version applies to market-based exchange rates.
The exchange rate for currency conversion shall be determined based on the mid-market exchange rate, as published by [designated financial institution or currency exchange service], on the date the payment is due. Any additional costs due to market fluctuation will be borne by the paying party.
Currency conversion clause with provision for multiple currencies
This version applies to multiple currencies.
If any payment under this Agreement involves the conversion between more than one currency, the exchange rates for each currency conversion shall be based on the rate published by [designated authority] on the date of each transaction. The parties agree to determine the order of conversion based on the currency of payment.
Currency conversion clause with provision for handling currency devaluation
This version applies to currency devaluation.
If the currency specified for payment undergoes a significant devaluation during the term of this Agreement, as determined by [specific threshold], the parties agree to adjust the payment amount accordingly to reflect the devalued currency’s current exchange rate.
Currency conversion clause with provision for handling underpayment due to exchange rate
This version applies to underpayment due to exchange rate fluctuations.
In the event that the currency conversion results in an underpayment, the paying party agrees to promptly pay the difference to the receiving party based on the exchange rate on the date the underpayment is identified.
Currency conversion clause with provision for settlement date exchange rate
This version applies to settlement date exchange rate.
The exchange rate for currency conversion will be determined based on the official settlement rate published by [specific exchange] on the date the payment is settled. If the settlement occurs on a non-business day, the rate for the preceding business day will apply.
Currency conversion clause with provision for exchange rate reconciliation
This version applies to exchange rate reconciliation.
If the parties agree that the initial currency conversion is incorrect due to an error in the exchange rate, the parties will perform a reconciliation and adjust the payment to reflect the correct conversion, using the exchange rate on the date of settlement.
Currency conversion clause with provision for handling fees and charges
This version applies to handling fees and charges.
The paying party agrees to bear all costs, fees, and charges associated with the currency conversion, including but not limited to bank fees, transfer charges, and any other related costs. The receiving party shall not be responsible for any such charges.
Currency conversion clause with provision for agreed conversion methodology
This version applies to an agreed conversion methodology.
The parties agree to use [specific methodology, e.g., simple average of buy and sell rates, central bank rates] for currency conversion, and both parties shall adhere to this methodology when calculating any amounts owed under this Agreement.
Currency conversion clause with provision for advance payment conversion
This version applies to advance payment conversion.
For any advance payments required under this Agreement, the exchange rate for converting the payment into the required currency will be fixed at the rate applicable on the date the advance is made, regardless of subsequent fluctuations in exchange rates.
Currency conversion clause with provision for rounding of amounts
This version applies to rounding of amounts.
Any converted amounts under this Agreement will be rounded to the nearest whole unit of the relevant currency. In the case of fractional units, the amount will be rounded up or down according to standard rounding rules.
Currency conversion clause with provision for dispute over exchange rate
This version applies to dispute over exchange rate.
If the parties cannot agree on the exchange rate to be used for currency conversion, the matter will be referred to a neutral third-party exchange service provider, whose decision will be final and binding.
Currency conversion clause with provision for payment in foreign currency
This version applies to payment in foreign currency.
The parties agree that payments made under this Agreement will be in [specified currency], unless otherwise agreed. Any conversion to or from [specified currency] will be carried out using the exchange rate set by [designated exchange or financial institution] at the time of payment.
Currency conversion clause with provision for forced conversion
This version applies to forced conversion.
If either party is legally compelled to make payments in a currency other than the one specified in this Agreement, the conversion rate shall be determined based on the exchange rate in effect on the date of the forced conversion, and the paying party shall bear any resulting costs.
Currency conversion clause with provision for exchange rate fluctuation
This version applies to exchange rate fluctuation.
If there is a fluctuation of more than [X]% in the exchange rate between the date of the Agreement and the date of payment, the parties agree to adjust the payment amount to reflect the new exchange rate. The adjustment will be based on the prevailing exchange rate at the time of payment.
Currency conversion clause with provision for delayed payment
This version applies to delayed payment.
In the event that a payment under this Agreement is delayed, the parties agree to adjust the payment amount based on the exchange rate on the actual date of payment, rather than the original scheduled date.
Currency conversion clause with provision for rounding up
This version applies to rounding up.
Any amount resulting from a currency conversion will be rounded up to the nearest whole unit of the applicable currency, except where this would result in an overpayment to the receiving party. In such cases, the rounding will be adjusted to the nearest permissible fraction of the currency.
Currency conversion clause with provision for exchange rate source
This version applies to exchange rate source.
The exchange rate for currency conversion will be determined by [designated authority, e.g., central bank or financial institution], as published on the day the payment is due. If the exchange rate is not available on that day, the rate from the closest preceding business day will be used.
Currency conversion clause with provision for payment of conversion fees
This version applies to conversion fees.
The paying party agrees to cover any fees or charges associated with currency conversion, including but not limited to bank fees, intermediary charges, and foreign exchange margins. The receiving party will not bear the costs of currency conversion.
Currency conversion clause with provision for agreement on rate
This version applies to agreement on rate.
The exchange rate for any currency conversion under this Agreement will be mutually agreed upon by both parties prior to each payment being made. If the parties cannot agree on the rate, they will use the market exchange rate at the time of payment.
Currency conversion clause with provision for periodic reassessment
This version applies to periodic reassessment.
The parties agree to reassess the currency exchange rate at regular intervals, including at the beginning of each calendar year, to ensure that the rates applied during the course of the Agreement are up to date and reflect current market conditions.
Currency conversion clause with provision for third-party rate verification
This version applies to third-party rate verification.
If there is a dispute over the exchange rate used for conversion, the parties agree to resolve the issue by referencing a third-party financial institution’s exchange rate, such as [specific institution], as the final authority for the applicable rate.
Currency conversion clause with provision for currency devaluation protection
This version applies to currency devaluation protection.
If the currency in which payments are due experiences a devaluation of more than [X]% during the term of this Agreement, the parties agree to adjust the payment amount to reflect the change in value. The adjustment will be based on the new exchange rate at the time of payment.
Currency conversion clause with provision for invoicing in multiple currencies
This version applies to invoicing in multiple currencies.
The parties agree that invoices under this Agreement may be issued in multiple currencies. When making payments, the paying party will convert the payment amount to the currency of the invoice using the exchange rate applicable on the date of payment.
Currency conversion clause with provision for partial payments
This version applies to partial payments.
If the payment under this Agreement is to be made in installments, the exchange rate for each installment will be determined based on the rate applicable on the date of payment for that installment, unless otherwise agreed.
Currency conversion clause with provision for exchange rate dispute resolution
This version applies to exchange rate dispute resolution.
In the event of a dispute over the exchange rate used for conversion, the parties agree to first attempt to resolve the issue through negotiation. If the dispute cannot be resolved amicably, the matter will be referred to a mutually agreed-upon third-party arbitrator.
Currency conversion clause with provision for historical exchange rates
This version applies to historical exchange rates.
If currency conversion is required for historical payments, the parties agree to use the exchange rate on the date of the transaction for which conversion is needed. If the exchange rate is unavailable for that specific date, the rate from the nearest business day will be used.
Currency conversion clause with provision for exchange rate shifts beyond a certain threshold
This version applies to exchange rate shifts beyond a certain threshold.
If the exchange rate shifts by more than [X]% from the rate on the date of execution of this Agreement to the date of payment, either party may request a renegotiation of the payment amount to reflect the new exchange rate.
Currency conversion clause with provision for protection against exchange rate loss
This version applies to protection against exchange rate loss.
In the event that a fluctuation in the exchange rate causes a significant loss (greater than [X]%) for one party, the affected party may request compensation for the difference based on the current market exchange rate at the time of the payment.
Currency conversion clause with provision for time-sensitive payments
This version applies to time-sensitive payments.
For any time-sensitive payments under this Agreement, the exchange rate to be used for currency conversion will be the rate in effect on the specified due date. If the payment is not made on the due date, the exchange rate on the actual payment date will apply.
Currency conversion clause with provision for agreed-upon currency exchange provider
This version applies to an agreed-upon currency exchange provider.
The parties agree to use [specific currency exchange provider] for all currency conversions under this Agreement. The exchange rate used will be the one provided by the provider at the time of the conversion.
Currency conversion clause with provision for handling multiple currencies in one payment
This version applies to handling multiple currencies.
If a payment involves the conversion of multiple currencies, the paying party agrees to convert each currency portion using the exchange rate applicable to each currency at the time of payment. The total payment will be the sum of all converted amounts.
Currency conversion clause with provision for dispute over payment amount
This version applies to dispute over payment amount.
In the event of a dispute over the payment amount due to currency conversion, the parties agree to work together to resolve the issue, using the exchange rate published by a mutually agreed-upon authority at the time of the dispute.
Currency conversion clause with provision for conversion fees paid by the paying party
This version applies to conversion fees paid by the paying party.
The paying party agrees to pay any conversion fees or charges associated with currency exchange, including but not limited to fees imposed by financial institutions, currency exchanges, or third-party service providers.
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