The appreciation of RMB will affect exports, mining machinery include. We can give an simple example. Supposing that Henan Hongxing Machinery Co., Ltd export a new type sand making machine to South Africa, and both sides agree with paying by U.S. dollars, while the equipment price is $25000. If before the appreciation of RMB, the exchange rate is like this $1 = 8.3 yuan RMB, so we can get 207500 yuan RMB from banks; now the RMB exchange rate is $1 = 7.9 yuan RMB. So after appreciation we can only get 197500 yuan from banks. Thus vested interest will reduce greatly, even will make the losses not to keep the exports. As to mining machinery, other exporting enterprises meet the same problems and no exception.
Present RMB exchange rate has raised to $1 = 6.6415 yuan, which breaks through the gate of 6.65 to creat a new top. And also, some specialists predict that the pressure of RMB appreciation is still great and it signs the unstable RMB exchange rate.Under this situation, how to deal with the trend for mining machinery industry? Hongxing company holds the view that mining machinery exporters shall change the main business point and pay more attention on... [continues]
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(2012, 01). Rising Rmb Exchange Rate Makes Great Impact on Mining Machinery. StudyMode.com. Retrieved 01, 2012, from http://www.studymode.com/essays/Rising-Rmb-Exchange-Rate-Makes-Great-886704.html
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