What are Leads and Lags?

Leads and Lags is when a payment or receipt for a foreign exchange transaction needs to be delayed and altered.
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Leads and Lags is when a payment or receipt for a foreign exchange transaction needs to be delayed and altered because of a change in exchange rates. A change in the exchange rate can either speed up the process or it can delay it. An increase in the exchange rate would likely speed up the process which would be the “leads” and a decrease in the exchange rate would be likely slow down the process which would be the “lags”.

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