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All global firms have a complex web of international suppliers that they buy raw materials and components from. Based on how frequently you can negotiate contracts and quantities with your suppliers, ever-shifting exchange rates could provide hidden opportunities to leverage a lower-cost supplier.
Some companies think that if they contract in their own local currency, they can eliminate the currency, but is not true. Suppliers will price in currency risk, or they will find ways to adjust price over time to account for it. If the currency moves in your favor, you will miss cost saving opportunities. It is important to agree on the baseline exchange rate of the initial quote, so there are no variation between suppliers and unexpected price changes over time.
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