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.


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.