How does the foreign trade business of stone crusher face the situation of exchange rate fluctuations?

There are two main reasons behind the recent sharp recovery of the RMB exchange rate against the US dollar: On the one hand, with the implementation of relevant national policies, it is conducive to the recovery of the domestic economy. The fundamental factor that determines the exchange rate is still the economic fundamentals. The market's economic expectations have improved significantly, which also has a significant boost to the exchange rate. On the other hand, from the perspective of the international foreign exchange market, the US dollar index as a whole has weakened significantly recently, non-US currencies have come out of recent highs, and the RMB exchange rate has also been similarly boosted.
At present, the market's consensus on the weakening of the US economy is gradually increasing, as the Fed enters the end of this round of interest rate hikes, if there is further data to confirm the consensus, and there is no major negative news in Europe and Japan, then basically it can be determined that the strong rise of the US dollar has come to an end.
At present, international investors are very optimistic about the development prospects of the Chinese market, including RMB assets, so now there are a lot of foreign capital entering China's capital market and RMB is still quite popular from the international perspective, all of which promote the appreciation of RMB. Of course, it must be good for us, at least it shows that RMB has been recognized by more and more countries and regions in the world. But we should not only be happy, if the RMB appreciation is too fast, the exchange rate rises too high, it will be harmful to our economy. Let's take a look at the current economic environment. China's economy is currently facing two major pressures. The first is the impact of the epidemic on the domestic economy, such as sluggish consumption. The second is that the US dollar rate hike cycle has basically come to an end, and governments have better psychological expectations for economic recovery.
The most important thing for China now is to stabilize the basic plate of economic development and do its best to maintain the healthy and steady development of the entire national economy.
So what's the next step for China? First of all, we must find ways to reduce the impact of the decline of the real estate industry on the development of the national economy, do everything possible to stimulate consumption, increase investment in domestic infrastructure construction, and revitalize the fundamentals of economic development. In addition, we will accelerate the internationalization of the RMB and try to settle international trade in RMB. With the addition of digital RMB, the internationalization process of RMB will be accelerated, so that RMB can continue to appreciate in the medium and long term.
However, the appreciation of the people will return to appreciation, but not too fast, stability is the first priority. If the appreciation of the RMB against the US dollar is too fast, it is not necessarily a good thing and will have a negative impact on our economy. First of all, the operation of the first foreign trade enterprise will suddenly face difficulties. For a long time in the past, we mainly relied on investment, export and consumption, among which the export economy is a very important one. After settlement in US dollars, foreign trade enterprises will suffer serious losses. At this time there are two main options, the first one either suffer losses, the second can only go bankrupt. However, they can also significantly increase the price of export products to recover the cost, but your goods to buy expensive, will reduce the competitiveness of the product in the international market, and will affect the entire industry chain one link after another in the price, breaking the original stable price system, so this thing is not easy to do.
A large amount of hot money from abroad will rush into China to buy assets in a short period of time, which is different from foreign investment. It is not a long-term investment in China's economic development, but a short-term speculation, which will raise the price of various assets to cash out, and the RMB will immediately withdraw when there is a fluctuation. It will cause the collapse of domestic asset prices, some industries or enterprises will be strongly affected, and even lead to turmoil in the financial sector. Foreign hot money and investment surge in a short period of time, the country needs to issue a corresponding base currency hedge, which will cause the real purchasing power of domestic money to decrease, leading to domestic inflation. So in the critical period of economic transformation. We should put more energy on the upgrading of scientific and technological level and core technology, and start industrial upgrading. Take the road of localization, really activate our domestic market, reduce the dependence of China's economy on export trade, so as to withstand some adverse effects brought by the continued appreciation of the RMB.
In the face of the above analysis, Shandong Sanxiang stone crusher plant in the development of foreign trade business how to face it correctly?
First of all: If the conditions are right, try to adhere to RMB settlement, so as to minimize the impact of RMB exchange rate changes against the US dollar.
Second: you can consider the local money received by the office to buy local products popular in the country, the implementation of export to import, to achieve two-way revenue.
Third: When signing contracts with customers, add a clause on exchange rate fluctuations to protect the economic interests of both sides of the trade from the source.
To sum up: in the face of frequent exchange rate fluctuations in the recent years, Shandong Sanxiang Heavy Industry Co., Ltd. should evaluate the situation, analyze specific problems, adhere to the principle of doing things from reality, and actively respond. In the future, the company will consider the problem of avoiding exchange rate risks, whether it is necessary to implement a series of measures such as export to import to effectively protect the healthy development of Shandong Sanxiang stone crusher plant foreign trade business.

Remark:Shandong Sanxiang Heavy Industry Co., Ltd.(As a stone crusher plant) specializes in the crusher industry and has achieved notable accomplishments in both soft and hard rock crushing domains. The factory is a stone crusher manufacturer and sopplier from Shandong province China,with the best stone crusher quality and price for you.We can accept the MOQ order as 1 set,and the delivery time is 15days after we confirm customer order.Beginning with the hammer crusher, they have successfully developed a comprehensive range of crushing machinery and equipment, including hydraulic double roll sand-making machines, rod mill sand-making machines, roller (grinding) sand-making machines, jaw crushers, impact crushers, double roll crushers, strong impact crushers, reversible strong impact crushers, vibrating feeders, circular vibrating screens, low-oil vibrating screens, triple shaft elliptical screens, and hydraulic cone crushers. The company also offers sales of accessories such as high-chromium alloy hammerheads and wear-resistant leakage plates.