RMB exchange rate fluctuations intensify, posing new challenges to cross-border trade companies

RMB exchange rate fluctuations intensify, posing new challenges to cross-border trade companies

The RMB has steadily appreciated against the US dollar

The RMB central parity rate recently set by the People's Bank of China (PBOC) indicates an appreciation bias, and predicts that the RMB exchange rate against the US dollar may gradually approach the 7.0 mark over the next six months.Data from August 12th showed that the offshore renminbi (CNH) was trading at 7.1881 against the US dollar, up 76 basis points from the previous day, while the onshore renminbi (CNY) rose slightly to 7.1850.

The RMB has depreciated against the euro

Affected by the short-term strength of the euro, the RMB has recently depreciated against the euro, falling by 174 basis points in the offshore market and 192 basis points in the onshore market.This trend makes Chinese exports to Europe more price competitive, but increases the cost of importing European goods.

Impact on Foreign Trade Enterprises

1: Export Profits Under Pressure

The appreciation of the RMB against the US dollar has reduced the profits of export companies that settle in US dollars, and some companies are facing pressure from customers to renegotiate prices.

2: Benefits for Import E-commerce Companies:

The appreciation of the RMB has reduced procurement costs for import companies, especially for cross-border logistics and commodity procurement settled in US dollars.

Some cross-border e-commerce platforms have adjusted their strategies, increasing imports of European goods to take advantage of the exchange rate.

Future Outlook

The RMB may continue to appreciate moderately: If expectations of a Federal Reserve rate cut grow, the US dollar may weaken further, driving RMB appreciation.

Businesses need to continuously adjust their strategies: dynamic pricing, multi-currency settlement, and localized supply chains will become key response measures.

In summary, the RMB exchange rate trend in August 2025 presents both challenges and opportunities for foreign trade companies. Companies that flexibly utilize financial tools and market strategies will be more competitive.

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