There will be a transaction cost for converting the payments into sterling.

You have to convert the foreign currency into sterling.

That means less fresh money going into sterling.

The results of overseas subsidiaries are translated into sterling at average rates for the year.

See the section in this guide on how to convert foreign currency transactions into sterling.

In addition, the dollar price is hedged into sterling to avoid currency exposure.

To convert foreign currency into sterling divide the amount by the rate of exchange.

You need to convert the foreign currency amount into sterling (see Section 18).

The forward contract would mature at the time when it was proposed to change back into sterling from lire.

This lets you make and accept euro payments without having to convert into sterling every time.