Since July 10th, the USD/CNY rate changes breakthrough 6.8, 6.7, 6.6, 6.5, to 6.45 on  September 12th; no one have thought that RMB would appreciate nearly 4% within 2 months. Recently,a textile company’s semi-annual report shows that, RMB appreciation led to exchange loss of 9.26 million yuan in the first half of 2017.

How should China's export companies respond? We suggest to use the following methods:
 
1 Incorporating exchange rate risk into cost control
Firstly,in a certain period of exchange rate changes generally between 3%-5%, take it into account when quoting. We can also be agreed with the customer if the rate exceeded, then the buyers and sellers both bear the loss of profits caused by exchange rate fluctuations. Secondly, The quotation validity time should reduce to 10-15 days from 1 month or update quotation daily in accordance with the exchange rate. Thirdly, provide different quoting according to different payment methods, like 50% prepaid is a price, 100% prepaid is another price, let the buyer choose.
 
2 Using RMB for settlement
Within the limits of policy permission, we can consider using RMB for settlement. We use the method with some clients, effectively avoid partial losses caused by exchange rate risk.