Currency Invoicing in Norwegian Salmon Export

Abstract

The purpose of this paper is to examine the choice of currency for Norwegian salmon exporters. The choice of invoicing currency will affect prices in different markets as well as risk, factors that are increasingly important as the supply chain for salmon is becoming more sophisticated and more transactions mechanisms are introduced. The results indicate that destination-specific market characteristics have impacts as to the choice of invoicing strategy. Norwegian salmon exporters primarily invoice in the export market currency (47% of the exported quantity), but also use a vehicle currency and producer pricing (19%) in a significant number of transactions. The euro is the preferred vehicle currency (18%), closely followed by US dollar (USD) (16%). The USD is the dominating invoicing currency for exports beyond Europe.