diff --git a/app/Models/Client.php b/app/Models/Client.php
index a72dd3344c29..8272e2fc10a5 100644
--- a/app/Models/Client.php
+++ b/app/Models/Client.php
@@ -812,6 +812,15 @@ class Client extends BaseModel implements HasLocalePreference
         return $defaults;
     }
 
+    public function setExchangeRate()
+    {
+        
+        $converter = new CurrencyApi();
+
+        return 1/$converter->convert(1, $this->currency()->id, $this->company->settings->currency_id);
+
+    }
+
     public function timezone_offset() :int
     {
         $offset = 0;
diff --git a/app/Services/Invoice/InvoiceService.php b/app/Services/Invoice/InvoiceService.php
index e435263879b1..045282f41aaf 100644
--- a/app/Services/Invoice/InvoiceService.php
+++ b/app/Services/Invoice/InvoiceService.php
@@ -567,7 +567,7 @@ class InvoiceService
 
         /* If client currency differs from the company default currency, then insert the client exchange rate on the model.*/
         if (! isset($this->invoice->exchange_rate) && $this->invoice->client->currency()->id != (int) $this->invoice->company->settings->currency_id) {
-            $this->invoice->exchange_rate = $this->invoice->client->currency()->exchange_rate;
+            $this->invoice->exchange_rate = $this->invoice->client->setExchangeRate();
         }
 
         if ($this->invoice->client->getSetting('auto_bill_standard_invoices')) {
diff --git a/tests/Feature/ClientTest.php b/tests/Feature/ClientTest.php
index b09978d6af67..92632dad2380 100644
--- a/tests/Feature/ClientTest.php
+++ b/tests/Feature/ClientTest.php
@@ -11,25 +11,27 @@
 
 namespace Tests\Feature;
 
+use Tests\TestCase;
+use App\Models\User;
+use App\Models\Client;
+use App\Models\Credit;
+use App\Models\Account;
+use App\Models\Company;
+use App\Models\Currency;
+use Tests\MockAccountData;
+use Illuminate\Support\Str;
+use App\Models\CompanyToken;
+use App\Models\ClientContact;
+use App\Utils\Traits\MakesHash;
+use App\DataMapper\ClientSettings;
 use App\DataMapper\CompanySettings;
 use App\DataMapper\DefaultSettings;
 use App\Factory\InvoiceItemFactory;
-use App\Models\Account;
-use App\Models\Client;
-use App\Models\ClientContact;
-use App\Models\Company;
-use App\Models\CompanyToken;
-use App\Models\Credit;
-use App\Models\User;
-use App\Utils\Traits\MakesHash;
 use Illuminate\Database\Eloquent\Model;
-use Illuminate\Foundation\Testing\DatabaseTransactions;
-use Illuminate\Routing\Middleware\ThrottleRequests;
 use Illuminate\Support\Facades\Session;
-use Illuminate\Support\Str;
 use Illuminate\Validation\ValidationException;
-use Tests\MockAccountData;
-use Tests\TestCase;
+use Illuminate\Routing\Middleware\ThrottleRequests;
+use Illuminate\Foundation\Testing\DatabaseTransactions;
 
 /**
  * @test
@@ -65,6 +67,34 @@ class ClientTest extends TestCase
         $this->makeTestData();
     }
 
+    public function testClientExchangeRateCalculation()
+    {
+        $settings = ClientSettings::defaults();
+        $settings->currency_id = 12;
+
+        $c = Client::factory()
+                ->create([
+                    'company_id' => $this->company->id,
+                    'user_id' => $this->user->id,
+                    'settings' => $settings
+                ]);
+
+        $settings = $this->company->settings;
+        $settings->currency_id = '3';
+
+        $this->company->saveSettings($settings, $this->company);
+
+        $client_exchange_rate = round($c->setExchangeRate(),2);
+
+        $aud_currency = Currency::find(12);
+        $eur_currency = Currency::find(3);
+
+        $synthetic_exchange = $aud_currency->exchange_rate / $eur_currency->exchange_rate;
+
+        $this->assertEquals($client_exchange_rate, round($synthetic_exchange,2));
+
+    }
+
     public function testStoreClientFixes2()
     {
         $data = [
diff --git a/tests/Unit/CurrencyApiTest.php b/tests/Unit/CurrencyApiTest.php
index d863dfac09e7..5db10d26ef9f 100644
--- a/tests/Unit/CurrencyApiTest.php
+++ b/tests/Unit/CurrencyApiTest.php
@@ -39,6 +39,7 @@ class CurrencyApiTest extends TestCase
         $converted_synthetic = 100 / ($aud_currency->exchange_rate / $eur_currency->exchange_rate);
 
         $this->assertEquals(round($converted_synthetic, 2), round($converted_amount, 2));
+        
     }
 
     public function testCurrencyConversionWorking()