Bad news for foreign trade companies—Appreciation of RMB

On the morning of the 9th, Beijing time, the exchange rate of offshore RMB against the US dollar rose by nearly 100 points, surpassing the 6.93 mark; it rose quickly again in the afternoon, surpassing 6.92.
The offshore RMB / USD exchange rate touched the front line of 6.91 yuan, and the onshore RMB / USD exchange rate also “break through” 6.92. As of 21:10, the onshore RMB against the US dollar rose to a maximum of 6.9207 yuan, a new high since August 2, 2019. In fact, since the end of 2019, the exchange rate of RMB against the US dollar has remained at a high level for nearly five months. As of the 9th, the onshore RMB / USD exchange rate has been running at the line of 6.9 yuan for 11 consecutive trading days.
The appreciation of the RMB is not good news for foreign trade companies, including our company, which will cause the price of power cords to rise and increase purchaser costs.
Analysts point out that the recent rise in the exchange rate of the RMB against the US dollar has not only subsided geopolitical haze, but also increased foreign exchange settlement, a warming trade situation, and a rise in investor risk appetite.

In addition, January was also the peak period for foreign exchange settlement of enterprises. Increased demand for foreign exchange settlement has promoted the rise of the RMB against the US dollar.


Post time: Jan-11-2020