Two Containers, One Rate: What Currency Movement Actually Costs on a China Order
An Argentine wholesaler's aluminium profile order ran to two 40HQ containers of extrusions, hardware and weather strip — bought on a 30/70 deposit and balance structure, which is where the currency question lives. Chinese factories cost in RMB. A USD quotation is a conversion made on the day it was prepared, which is why project quotations usually stay valid for only 15–30 days. Sign one, pay 30% at deposit, and 70% of the order value sits in an open currency position for the 60–120 days of production. Do the arithmetic once: a 3% adverse move between deposit and balance costs 3% of that 70% — a little over 2% of the whole package. On an order where the agency fee itself is 5–8%, an unmanaged 2% slip has eaten a real share of what the procurement package was supposed to deliver. Three structures are in use. A fixed contract rate for all payments, usually obtainable when production runs under about 90 days. A band of plus or minus 2–3% with a re-quote trigger beyond it, used on long-lead packages. Or no clause at all, which means negotiating after the goods are already made. If the band clause only triggers when the supplier is losing money, it is not a currency clause — it is a one-way option. Write it both ways. Full breakdown: https://fbmsourcing.com/usd-rmb-exchange-rate-china-project-order/?utm_source=tumblr&utm_medium=referral&utm_campaign=education&utm_content=0817 — Project case: https://fbmsourcing.com/customized-aluminum-profiles-procurement-for-argentina-wholesaler/?utm_source=tumblr&utm_medium=referral&utm_campaign=case_study









