Choosing the optimal currency for doing business: key factors and advertising campaigns

Which currency is best for running your business? This question may seem simple, but in fact it requires deep analysis and thought.

Why is currency choice so important for business?

The choice of currency plays a key role for international and even domestic business for several reasons:

• Exchange Risk: Fluctuations in foreign exchange rates can significantly affect the value of imports, exports and foreign investments. If a company does business in another country and its income and expenses are tied to different currencies, it may face losses due to unfavorable currency fluctuations.
• Cost of financing: Interest rates may vary between currencies. The choice of a particular currency can affect the cost of lending and investing.
• Inflation: Currencies with high inflation can quickly lose their purchasing power, which affects the cost of imports, payments to foreign partners and the overall financial condition of the company.
• Perception and trust: For many international partners, dealing in stable and widely accepted currencies such as the US dollar or euro can create more trust and confidence in the transaction.
• Accounting and reporting: Working with multiple currencies can add complexity to accounting and financial procedures and may require additional translation and hedging efforts.
• Liquidity: Some currencies are more liquid than others, which may impact your ability to quickly convert funds when needed.

It is important that companies conducting international business or dealing with foreign partners are aware of these risks and take measures to minimize them. This may include hedging currency risks, timing transactions or selecting the most appropriate currency for a transaction.

For businessmen who regularly face the need to convert currency, for example, there is a need to buy dollars in Kyiv, choosing a reliable and profitable currency exchanger becomes critically important. Currency exchangers in Kyiv from Keith Group offer various rates, and the right choice can save significant money. In addition, by working with proven and reliable exchangers, a business can avoid possible risks associated with fraud or unexpected commissions, ensuring its financial stability and continuity of operations, especially if you need to buy pounds in Kiev.

Advertising campaigns and currency selection

When running advertising campaigns in Google Ads and Meta (targeted advertising on Facebook, Instagram) for an advertiser from Ukraine, it is worth considering several points:

• Target Audience: If your target audience is in Ukraine, then UAH (UAH) would be the most logical choice, as it will allow you to more easily control your budget and estimate the cost of advertising. However, if your target audience is in another country, then it is better to use the currency of that country.
• Currency Risks: If you choose to use foreign currency, be aware of possible exchange rate fluctuations. This may impact your advertising budget. For Ukrainian companies this is especially important due to the relative volatility of the hryvnia.
• Conversion and fees: Banks and payment systems may charge fees for currency conversion. This can also affect the overall cost of your advertising campaign.
• Liquidity: Make sure you have access to the right currency to pay for your ad campaign.
• Accounting and reporting: if your accounting is carried out in hryvnia, consider the additional complexity and costs of conversion and accounting when using another currency.

In practice, many Ukrainian advertisers running campaigns in Google Ads and Meta for the Ukrainian audience prefer to use hryvnia. However, if you have an international audience or have other reasons for using a different currency (for example, accounting or financial considerations), then you may want to be more thoughtful about your currency choice.

It’s also worth noting that when you create an account in Google Ads or Meta, you will have to select a billing currency, and after that you will not be able to change the selected currency. Please take this into account when registering.