Business Partner : GM Metal Packaging

China Currency under pressure from the Dollar

The RMB Renminbi was a fixed rate with the USD until 2005, and while it held it’s own we have seen dramatic changes during 2017 from a high of 6.891 in June 2017 to 6.273 in February 2018.

The knock on affect is huge,  as an example if a tin cost RMB5.50 to make the cost in US Dollars would be USD0.798 in June 2017 and now USD0.877 for the same tin, a difference of just under 10%.

If you imagine high retail items like Xbox’s, Iphones, washing machines etc this can have a massive affect to the retail price.

The RMB is under great pressure and the China Government might need to look at revaluing the currency again later this year if they are to sustain their exports expectations.

Previous ArticleNext Article