How turnkey projects relates to foreign exchange?

Turnkey projects often involve international contracts where one party agrees to deliver a fully operational facility to another, typically in a foreign country. As these projects require significant capital investment and involve multiple currencies, fluctuations in foreign exchange rates can impact overall costs and profitability. Additionally, foreign exchange risk must be managed to ensure that budgeted amounts in one currency align with actual expenditures in another, affecting project feasibility and financial planning. Thus, effective currency management is crucial for the success of turnkey projects.