# What mechanism is used to ensure that the Employer carries the risk of changes in the exchange rate?

**URL:** https://reachback.builtintelligence.com/t/what-mechanism-is-used-to-ensure-that-the-employer-carries-the-risk-of-changes-in-the-exchange-rate/880
**Category:** Secondary X, W and Y options
**Created:** [16 October 2012 11:56 UTC](https://reachback.builtintelligence.com/t/what-mechanism-is-used-to-ensure-that-the-employer-carries-the-risk-of-changes-in-the-exchange-rate/880 "2012-10-16T11:56:50Z")
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### Author: ![BuiltIntelligence](https://avatars.discourse-cdn.com/v4/letter/b/919ad9/32.png) [@BuiltIntelligence](https://reachback.builtintelligence.com/u/BuiltIntelligence)
#### Post date: [16 October 2012 11:56 UTC](https://reachback.builtintelligence.com/t/what-mechanism-is-used-to-ensure-that-the-employer-carries-the-risk-of-changes-in-the-exchange-rate/880/1 "2012-10-16T11:56:50Z")

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What mechanism is used to ensure that the Employer carries the risk of changes in the exchange rate?

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### Author: ![BuiltIntelligence](https://avatars.discourse-cdn.com/v4/letter/b/919ad9/32.png) [@BuiltIntelligence](https://reachback.builtintelligence.com/u/BuiltIntelligence)
#### Post date: [16 October 2012 11:57 UTC](https://reachback.builtintelligence.com/t/what-mechanism-is-used-to-ensure-that-the-employer-carries-the-risk-of-changes-in-the-exchange-rate/880/2 "2012-10-16T11:57:03Z")

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The exchange rate is fixed for each currency relative to the currency of the contract. This ensures that the Contractor is paid the amount of the other currency which he has quoted for the item.