0755-25643421
Home > News > News > The renminbi has risen too fast, the exchange rate has entered the "6.5 era", and profits have decreased. Foreign traders collectively complained!
Certifications
Latest NewsMore>>
Hot products
Contact us
distribution business is an
international logistics service provider that is
rapidly developing through the service practice for many customers including the Global top 500 enterprises.
Contact Now

News

The renminbi has risen too fast, the exchange rate has entered the "6.5 era", and profits have decreased. Foreign traders collectively complained!

Foreign traders said they were not calm in the face of the onshore renminbi exchange rate surge.


"I didn't dare to settle foreign exchange. As a result, the exchange rate became lower and lower, making foreign trade too difficult."

"The exchange rate has plummeted, ocean freight has risen, and materials have risen. Is this not giving foreign traders a way to survive?"

"The foreign trade goods have been sent out, and those who have not received the payment will be crying in the toilet."

...


For foreign traders, their business generally adopts US dollar accounting and renminbi settlement. The decline in the US dollar exchange rate means a decrease in order profits. Even if the sales volume is good, it is difficult to make up for the loss of foreign exchange. However, the current trend of RMB appreciation is obvious, which is not good for the export and foreign trade industries.

On the one hand, there is a depression in the number of orders placed by the epidemic, and on the other, the exchange rate continues to rise. In this two-way volatile market, export companies need to practice some unique skills-exchange rate risk management.

Without "unique skills", there are risks. Therefore, in the face of exchange rate fluctuations, companies should strengthen their awareness of risk prevention.

First, it is necessary to change the unilateral linear thinking of whether the renminbi is rising or depreciating, and establish the awareness of two-way fluctuations in the renminbi exchange rate;

Second, it is necessary to conduct reasonable and prudent transactions, conduct risk assessments, and appropriately hedge exchange rate exposure;

Third, it is necessary to control currency mismatches as much as possible, and reasonably arrange the currency structure of assets and liabilities;

Fourth, don't use exchange rate hedging tools as speculative arbitrage tools to take unnecessary risks.