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Importers are after the exchange rate

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  • Importers are after the exchange rate

    This is related to the devalued Yuan of China that their importers are now having a hard time in buying since they would need more Yuan to pay. Instead of paying 6 Yuan for an item, paying 7 Yuan is clearly a loss on their part. That would reverberate to the prices of imported goods that Chinese traders would surely struggle with the market.

  • #2
    If you will notice that traders are dependent on the exchange rate because of the fluctuation then you will realize that a slight change in the exchange rate can cause an added profit or a lesser income for the trader. That is the main reason why importation in countries with unstable economies are hindered.