Why should foreign traders respond sensitively to changes in exchange rates?

As a foreign trade factory that has been producing drinking glasses for 19 years, we must pay attention to the exchange rate every day and realize the revenue of foreign trade transactions through accurate management of the exchange rate. Why should foreign traders respond sensitively to changes in exchange rates?

When the global economy is in trouble and the process relationship is balanced for a long period of time, the fluctuation of the exchange rate is relatively small, and it will remain stable for a long time.

Usually when the global economy is one-sided, exchange rate fluctuations will be relatively large, and at the same time, exchange rate fluctuations will result in epidemics, wars, and so on.For example, 2021 is a relatively special year.In this year, only a handful of countries in the world quickly controlled the epidemic, of which China is the best country.

As the Chinese government attaches great importance to the development of the epidemic, the entire population has also been fully vaccinated and popularized methods to prevent the epidemic.Therefore, when the global economy is affected by the epidemic in 2021, only China is still growing at a high speed.

The Chinese economy will be one-sided in the global economic market in 2021.In order to maintain the capital market and safeguard the country’s financial collapse, European and American countries have adopted irresponsible practices to the global economy, printing a large number of banknotes, and shifting the risk of inflation to the world.In this context, foreign traders must be sensitive to and respond to changes in exchange rates to avoid major losses.

In the past, quotations based on real-time exchange rates should become neutral and safe exchange rates to avoid large fluctuations in exchange rates within a short period of time.In the past, if the validity period of the quotation was 30 days or longer, it was necessary to shorten the validity period of the quotation, which can also reduce the risk of exchange rate fluctuations.

Dongguan Zhanyi Commodity Technology Co., Ltd. specializes in the production of metal cups, plastic cups, coffee cups, suction mug, lunch boxes, food jar, travel mugs, portable water bottles, sports bottles, home life desktop trash cans, thermos bottles, etc.These products are all our annual exports, and are recognized and loved by the US, Europe, Australia, Japan, South Korea, Taiwan, Hong Kong and other consumers. Support for small quantity order, fast customization.