The End of the Dollar is Nigh
March 28th, 2008 | by This is China! |The Financial Times reports that Chinese suppliers are taking currency matters into their own hands.
“’They are moving to euros, pounds, Australian dollars or even quoting prices in renminbi,” David Wei, chief executive, told the Financial Times. Moreover, he added, prices quoted in dollars were now often valid for just seven days compared with the 30-60 days common previously.”
Or, if Chinese suppliers are quoting dollars, they are quoting there own exchange rates.
“Xiao Zheng, chairman of Dongguan City Shima Toys in southern China, said its price quotations were valid for three months but were calculated based on an exchange rate of Rmb6.6 to the dollar.
“With the official exchange rate at Rmb7.01 to the dollar on Thursday, this in effect raised prices 5.8 per cent.
“’We are thinking about renewing our quotations every other month and we are also going to offer quotations in euros very soon,’ said Mr Xiao.”
One Response to “The End of the Dollar is Nigh”
By Chris Devonshire-Ellis on Apr 7, 2008 | Reply
This is correct. And don’t expect too many orders at next months Canton Trade Fair - the strength of the RMB is keeping international buyers well away.