The US government is facing a shutdown due to "lack of money"! The exchange rate fell below 6.52, and a large number of sellers' available shipments were cleared...

The United States is now in dire straits. As the epidemic cannot be controlled and there is no hope for economic restart, the US government is now facing a shutdown crisis due to lack of money . If the funds run out, some non-essential government workers may be forced to work without pay.

The resulting chain reaction will affect many aspects, from airport operations to government health agencies responding to the epidemic.

The U.S. government's appropriations for almost all federal agencies will expire on December 11. According to USA Today, if Congress cannot reach a consensus on the appropriations bill this week, the U.S. government may face a "shutdown" crisis before the end of this week.

On Monday (7th) local time, House Majority Leader Hoyer said the House will vote on Wednesday (9th) to extend the appropriations for one week to allow "negotiations to continue while keeping the government open." The House said negotiations will take more time to reach a long-term agreement.

Lawmakers have been squabbling over a federal government funding package, with the decision to extend the temporary funding bill until after the election until December. But differences between Republicans and Democrats mean the bill may not be agreed upon before the end of the week.

Since the end of May, the RMB exchange rate has entered a rapid appreciation channel. In November, the RMB spot exchange rate against the US dollar rose by 1.78%, achieving a six-month consecutive increase and recording the longest monthly consecutive increase period in six years.

On December 8, the onshore RMB exchange rate against the US dollar opened slightly higher by more than 40 points to 6.5340. At the same time, the offshore RMB exchange rate against the US dollar fell in the short term and fell below the 6.52 mark . As of 9:32, the onshore and offshore RMB exchange rates against the US dollar were 6.5350 and 6.5224 respectively.

What does this mean? For a foreign trade company, if a one million dollar order is signed in August and delivered in November, the profit will be reduced by 500,000 RMB .

USD to RMB exchange rate chart

A foreign trade company said that its largest customer in the United States held a conference call with it and refused to raise the price. In the end, he only raised the price by half, and the remaining half would be decided based on the exchange rate when the goods are delivered. The customer was very unhappy and went to other factories to inquire about the price.

Due to the recent shortage of containers, many foreign trade companies have a large number of goods stranded in their factories . The goods have been prepared for a long time but have not been shipped out. The exchange rate is falling day by day. For many foreign trade companies, there is a risk of a broken capital chain at any time .

However, under such appreciation pressure, China's exports still maintained growth, and even exports to the United States maintained double-digit growth. According to the latest data released by the General Administration of Customs on December 7, in terms of US dollars, exports in November increased by 21.1% year-on-year, setting the highest growth rate since February 2018!

Industry insiders analyzed that the strong RMB exchange rate is expected to remain for some time, or it may manifest itself in the form of a gradual appreciation under high exchange rate volatility, and there is a possibility of breaking through 6.5 in the short term.

Recently, some sellers reported that when they checked the inventory capacity, they found that the system showed that the products did not meet the requirements for creating a shipment and would not be shipped .

Sellers are confused because their products are selling well but Amazon is not delivering them. Unexpectedly, a large number of sellers have begun to complain about the recent restrictions on the number of shipments that FBA can deliver.

"There was a product with a limited quantity of more than 4,000. More than 4,000 were shipped. After a few days of sales, more than 800 were ready to be shipped by sea. Before the goods arrived at the freight forwarder, the inventory limit became more than 2,000. The inventory exceeded 1,000 . The inventory plan showed low inventory. It really made people stupid!"

"Same thing. It looks like they can only ship one month's worth of stock now . So miserable."

"It is true. Basically, we can only supply 30-35 days of inventory. It is hopeless."

"It's all the same. The inventory limit has been decreasing, and the sales volume is also decreasing! What's going on?"

"We have 20 orders a day, and we could deliver 100+ a few days ago. But today, we can only deliver 0 , and we have hundreds of overstocked items ?"

"Don't send it. I sent 300 the day before yesterday, but today I saw 0. I didn't even save the shipment. It's too late to say anything."

…

Sellers are complaining.

The maximum inventory capacity is only one month left, and Haipai’s shipments will be out of stock. We can only sell for 30 days and are not allowed to restock. How can we survive?

The sellers’ future business model will fall into a vicious circle and dead loop of “ reduced inventory capacity - product price increase - reduced sales after price increase - even less inventory capacity - product price increase ”.

There was news that inventory restrictions would be relaxed in December, but now they are suddenly strictly restricted again, which really caught sellers off guard.

In this regard, some sellers consulted Amazon customer service, who said that it might be affected by the "Amazon Logistics Sales Date" policy and that they would have to wait until December 17 to observe the situation. It is believed that Amazon's substantial reduction in the number of shipments is only temporary .