Business exam question trouble

Hi I've been set a past paper and would love some suggestions for one of the business questions that has got me stuck:

"A UK manufacturing company has over time purchased its raw materials from Europe using a euro overdraft facility. The current Euro balance is €2,000,000. Most of the transactions took place when the exchange rate was £1-€1.50. Now rate is £1-€1.15. The company and bank are concerned about the exchange rate exposure. What would you recommend to the company directors as an advisor?"

Reply 1

pete1017

Im not certain on this one (what course is this btw?)
But i'd say pay off as much of the overdraft as possible (as the exchn rate is worsening, they'll end up paying more interest).
And then try to find raw materials available in the UK or country offering a more favourable exchange rate.

Evil question though

Reply 2

cookieboy

Do Ecnomics, youd piss over this mayne! what board is this?