What shall I do when I want to import goods abroad but encounter dollar rising?
The above argument basically explains why you need to use more money to exchange dollars now.Faced with this fact, how to deal with the adverse effects of the appreciation of the dollar?
As an economist of Zhengzhou Hento Machinery Company,I have been doing international business for many years.I recommend you to pay by Chinese Yuan(RMB). Because the dollar has appreciated, but Chinese Yuan hasn’t raised interest rates. In fact, China has cut interest rates several times in disguise this year. As you know, Chinese Yuan is also an international currency.It is one of the five currencies that have been included in the IMF’s Special Drawing Rights (SDR) currency basket.
Someone asks me, now the US dollar exchange rate is so high, shall I stop purchasing and wait for a well?
Before I give advice to you,let’s take a look at the historical interest rate of the dollar.
Although the FED has raised interest rates several times in a row, there is still a considerable gap in the normalization level of interest rates of around 3%.The Fed’s expectation of the pace of interest rate hikes in the next two years will remain unchanged. According to the prediction of several authoritative organizations, the FED will raise interest rates once this year, and will raise interest rates three times and one time respectively in 2019 and 2020. In other words, it is a big probability that the dollar exchange rate will continue to rise in the next several years. So, in terms of the upward trend of the US dollar exchange rate, it is better to exchange US dollars now rather than tomorrow. This doesn’t take into account the earlier and more revenue you will receive if you import goods earlier. What is you opinion?
Do you know such ways to save moeny for inporting goods?