Today the exchange rate of USD and RMB is 6.39, It has been quite difficult situation. In the mean time, most of the raw materials have been increased, recently,we received the inform from the wooden supplier that all the wooden raw materials will increase 5%, The steel has increased 10%, the massage vibration massage increased 10%. Everything is so crazy.
Business is quite hard to do in the difficult situation. The freight cost has incrased three times, we are trying our best to support our customer,so we have make big improvement for most of the recliners with more loading QTY, for example, normally we load out 117pcs power lift chair, but now,for some big models,we can load even 152pcs. So it has save a lot of cost for customer.
As a very professional factory for all kinds of recliners, we are always working very hard to help and support our customers.
The reasons for the yuan’s appreciation come from internal forces within China’s economic system as well as external pressures. The internal factors include international balance of payments, foreign exchange reserve, price level and inflation, economic growth and interest rate.
The appreciation of the RMB in the most colloquial terms means that the purchasing power of the RMB increases. For example, in the international market (only in the international market can the increased purchasing power of RMB be reflected), one yuan can buy only one unit of goods, but after the appreciation of RMB, it can buy more units of goods. The appreciation or depreciation of RMB is intuitively reflected by the exchange rate.
Some export enterprises have taken various positive measures to deal with the risk brought by the instability of exchange rate. Some enterprises take the exchange rate into consideration when signing contracts with foreign investors.