The US dollar broke 7 for the first time in 4 years! What impact does it have on Amazon sellers?

If we only consider the present, the rise in the US dollar exchange rate is of course beneficial to us Amazon sellers. The simplest and crudest manifestation is that the US dollars we earn are more valuable.

Sellers who have withdrawn funds in the past two days should feel this deeply. If they withdrew 10,000 US dollars one day earlier, they would have lost several hundred US dollars.

There are also witty jokes from sellers in our group that fully demonstrate this point (sellers who want to join the group can scan the QR code at the end of the article to be added to the group) .

Although the short-term decline is beneficial to us, it is not a good thing for the overall economic environment of our country.

Although the difference between last Friday's 6.95 and 7 is only 0.05, the exchange rate of 7.0 is actually more of a signal.

If the exchange rate can hold the 7.0 mark, it means that the RMB exchange rate is generally under the control of the central bank. The capital market's expectations for the future of the RMB will be relatively stable, neither bullish nor bearish.

However, once the 7.0 level is broken, the capital market will determine that the RMB has a downward trend and space in the future, and will short the RMB . Our country's capital flows, imports and foreign exchange reserves will be affected to varying degrees of turbulence.

In future trade negotiations, the United States can also use these negative impacts on us as bargaining chips to force us to make concessions.

To sum up, the disadvantages of breaking 7 outweigh the advantages . After all, only the foreign trade export industry, including ours, can enjoy this "benefit", while the disadvantages will affect our overall economic environment.

As mentioned before, shorting the RMB will lead to further depreciation of the RMB, but the central bank's control measures and policies are more powerful. Coupled with the foreign exchange reserves of up to 3 trillion, it is not difficult to stop the wheel of the exchange rate.

Therefore, the exchange rate breaking 7 this time is likely to be intentional by the central bank

The first reason is that the Fed’s interest rate cuts give our government more room to manipulate currency.

Secondly, it can also help cross-border export sellers affected by the 300 billion yuan to resist the impact of the 10% tariff imposed on September 1.

The spokesperson of the central bank said long ago that "the symbolic significance of the integer threshold of the RMB exchange rate is greater than its actual significance. " Therefore, the depreciation of the RMB against the US dollar this time is still a fluctuation within a controllable range.

Sellers who need to withdraw money in the near future can wait and see, but don’t have too high expectations.

What deserves more attention and adjustment are the 300 billion tariffs in September and the China-US consultations. The impact of a direct 10% increase in costs is too great, and the government may even have to relax the exchange rate a little to give sellers a buffer. We must be prepared to respond from now on.

Sellers who want to check whether their products will be taxed in September, please scan the QR code below to contact me to receive the September 300 billion tax increase list.

PS. If you want to join the seller discussion group, you can also private message me to let me add you to the group

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