The Impact Of The Dollar's Rise On Foreign Trade

- Jul 03, 2018 -

The impact of the dollar's rise on foreign trade

The RMB has fallen 1500 points against the us dollar in just a few days, and the depreciation speed is directly approaching the exchange rate reform of 811 in 2015.The personage inside course of study points out that the current RMB more adjustment is the result of the internal and external interaction - the third sino-us trade war would enter a state of a complex game, directional down, the people's bank of China or continue to continue to raise interest rates and the fed large probability, spreads the pressure of China and the United States, these factors will undoubtedly is likely to affect the RMB exchange rate.

On the 27 th, the RMB was trading at 6.5569 against the us dollar, down 389 basis points from the previous trading day and the lowest since December 25, 2017.The onshore renminbi fell below the 6.61 mark in the morning, down more than 200 basis points on the day.

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 For domestic export enterprises, the devaluation of RMB is equivalent to the price advantage of export goods, which is helpful to the competitiveness of enterprises.

An export enterprise to overseas buyers $1 million list of export goods, to April 2, 6. 26 exchange rate, the income is 6.26 million yuan RMB, and according to the exchange rate of 27, 6.61 income of up to 6.61 million yuan, the difference of more than 350000 yuan!For sellers who charge dollars, a devaluation of the yuan would be tantamount to waiting for a new high, allowing them to withdraw the dollars they have been sitting on for days and easing financial pressure.Therefore, the seller should pay close attention to the recent exchange rate fluctuations and choose the opportunity to exchange dollars.

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Some in the industry analysis, for a single seller, its role is really not obvious.But the international exchange rate is not a simple measure of the value of money between two countries.And although the renminbi on the way of globalization more walk more smoothly, but in regard to export electricity settlement way, mainly represented by speed sell pass directly in dollars, and the other is a direct charge local currencies, such as the rupee, and then through the bank settlement of exchange.

So, the exchange rate of a small change to drag in withdrawal is not just that simple, the change of national policy, overseas market turmoil will affect exchange rate, such as by showing peep nature of events, to avoid risk in advance, and be safe.

 


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