INTERNATIONAL EXCHANGE RATE SHOCKED TYRE BUSINESS

The radical appreciation for Chinese Currency CNY against USD is nothing new. But ever since this August, the globle environment shacking exchange rates made Chinese tyre Industry feel more pressure.

Given the limitations of using few national currencies, especially the situation of over depending on US dollars, Chinese tyre industry now focus more on the core issue: HOW TO BALANCE AND SELF-DEFENDING IN THE TIDE OF EXCHANGE RATE SHACKING. Bellow we will offer an chart  of the long run behavoir of exchange rate--CNY against USD, then take we SINORIENT TYRE CO.,LTD as an example, elaborate you the global enviornment Chinese tyre industry faces.

 No matter like or not, the above chart shows obvious a fact, Chinese Currency CNY is in a long run of dramatical appreciation. Our main business is tyres, we import raw material especially rubber and a part of steels from overseas, and sell tyres domestically and internationally.  On one side, assist by this appreciation  , we could purchase materials with comparatively low prices valued by CNY, but on the other main hand, when we sell tyres internationally, the real income shrunk sharply.

Situation could be worse. Ever since this July, more and more alert arised by the U.S. debt divided up, Chinese tyres are much and much. What is more,during this period, due to the gloomy forecast of future enconmy, some countries currency even devaluation sharply against US Dollars. Give Russua Rouble as exmple, Rouble devalued over 3% against US Dollars on Aug. 9th, the single day. Even though the following days exchanged rate shows some favorable reverse, but the sharply change still chocked some Russian Clients, especially small clients whom without enough regular USD fund on their account, clients become more and more cautious for spending and purchasing. 

As many others, SINORIENT TYRE CO.,LTD have get used to "SITUATIONS", what we are doing now is better our products and service, that is also the core spirit of us.