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What's influence of USD to RMB(CNY) exchange rate on price of non dairy creamer?

What's influence of USD to RMB(CNY) exchange rate on price of non dairy creamer?

2023-01-05

As per Bank of China's exchange rate bulletin, we noticed that USD to RMB exchange rate  rush to 6.88 from 6.95 on 30th Dec 2022. 


So what is the influence on such sharpe change? 

We learned that there is not much RMB price difference in non dairy creamer raw material market. Therefore RMB quotation will  keep same. Considering USD exchange rate going down in future and bank forward exchange rate is much lower than current price, thus, USD price will  increase accordingly. 


Chinsee new year is coming soon, as per experience, it will be risk for china exporters to quote base on current exchange rate. As a result, this risk charge will be included in USD quotation.

If the buyers can pay RMB(CNY) from its countries for non dairy creamer, dealing with RMB(CNY) price will be good choice. 


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