A: Hey, have you heard about the USD to CNY exchange rate?
B: Yes, it dropped from 7.32 to 7.11 in just over ten days!
A: Really? That’s a significant drop. What was the rate at the beginning of November?
B: It was around 7.32, then it fluctuated between 7.27-7.28 for a while.
A: And then?
B: Well, in the second week, it fell below 7.25 to 7.23. But things got worse From Monday of the third week when it suddenly plummeted to 7.12. But it rose to 7.13-7.14 after that but quickly dropped to 7.11 in the Fourth week
A: That’s alarming! Export companies must be facing losses now, especially for contracts signed two weeks ago.
B: Exactly. The rapid decline in the exchange rate is causing concerns for many businesses.
A: Well, the order I just signed a week before has no profit now.
USD/CNY Exchange Rate drops from 7.3 to 7.12 (2.73%)
Again! USD/CNY Live Rate on Nov,29,2023.
A: Oh no, the exchange rate dropped to 7.12 and then slowly rose back to 7.14, but today it directly fell to 7.11. 0.42% again!!! The fluctuation of the exchange rate is really giving us a headache. I wonder if it will continue to decline.
B: Yeah, the volatility of the exchange rate is really unpredictable. As importers, our purchasing costs are getting higher and higher. Especially during this year’s Black Friday sales season, the sales data is not good, which is a big concern for us.
A: I hope the exchange rate can rise to ease our cost pressure. The increase in purchasing costs has a significant impact on our business because most of our raw materials are settled in foreign currency. The fluctuation of the exchange rate directly affects our profit and competitiveness.
B: Exactly, that’s why we have been closely monitoring the exchange rate trend, hoping for stability or even a certain upward trend. This way, our purchasing costs will decrease, and our product prices can be more competitive.
A: At the same time, we also hope that this year’s Black Friday sales season will improve and bring us more orders and profits. Overall, we hope to smoothly overcome this difficult period and achieve stable business growth.
A: Could you give me any advice?
- Find alternatives or provide alternative solutions: Explore whether there are other suppliers or products that can meet your needs, or if there are other strategies to reduce costs. This can help alleviate the pressure of the price increase to some extent.
- Adjust budget and expenses: Reevaluate your budget and look for opportunities to save costs. Consider reducing unnecessary expenses and optimizing resource allocation to adapt to the price increase.
- Seek opportunities for market adjustments: Exchange rate fluctuations may have an impact on the market, but they can also bring new opportunities for certain industries or products. By carefully studying the market changes, you may discover new directions for development or profit growth.
- Negotiate with suppliers: Try to negotiate with suppliers to find mutually beneficial solutions. It may be possible to discuss price adjustments, flexible payment terms, or other forms of cooperation to alleviate the pressure of the price increase.
- Strengthen market research and competitive analysis: Understand the market strategies, pricing situations of competitors, and other factors that may affect the market. This will help you better respond to market fluctuations and make wiser decisions.
I hope these suggestions are helpful to you. If you have any other questions or needs, please let me know.
We’d like to hear your voice.