how terrible the exchange rate changes.
By tousif1988
@tousif1988 (373)
India
November 7, 2008 1:09pm CST
The exchange between USD and RMB is 1: 6.77 now, so terrible. Is it harm to my business or not.???????? We export that name brands high copies , such as nike jordan puam gucci adidas CA sinful supra ATO AF chanle lv coach chloe fendi and so many other brands. What should we do, Does the exchange rate can rise up again? Some say that it does badly harm to export industry here in China. But Some just say it is a good stuff that the USD is not worthy. Beacuse if USD is not worthy as before, so they US ppl cant afford the luxury goods too much as before . Then they will prefer to buy goods from China more and other Asia countries.No matter how the exchange rate changes, the economy will decline definitely in the coming years. Another economic crisis is coming!!! We everyone here should keep alarm. But everything will pass because of this phenomenon is the result of society and economy development.
2 responses
@prinzess1515 (1341)
• United States
7 Nov 08
It should not effect you really. You charge what you charge and the reason people are buying those designer look a like from China is because it is illegal to buy the in the United States.
@pierone (1894)
• Italy
7 Nov 08
Hello,
maybe you not got totally the matter.
Is not the USD going down, is the RMB growing!
Euro lose more than 10% on RMB since the past august to today.
And USD rised up against euro, from 1,56 to 1,28.
That means that, while the china's copies of puma, gucci, prada, are costing much more now in the US, the original products are costing less than before.
And there is another problem right now, for your country.
They have lot of money invested around the world, expecially in USA. And for the actual forex conditions, the only thing china can do is continue to invest abroad. Coz if they run out from investment now, they will lose lot of money. For example, 1 year ago dollar was a bit less 9 rmb, if i'm not so wrong. So to invest 1 million dollars they paid 9 millions RMB. If they run out today, they will get 6.8 millions only. And in the short time, i don't guess the situation will change.
Your government should "invent" the crisis there too, so your currency will go down and the exchange among RMB and the other currency will come back to the previous values. But this means generate some inflation inner the country... so the solution is not so easy.....
China is growing, and growing fast, everywhere there are new buildings going up, roads, towns... i guess in this moment, the exchange rate is good for the country, despite is not so good for the people. Will comes better times for the people. In the while inner country investments will be more easy, coz you (the country) can buy goodies abroad for less....
