Thursday, March 27, 2008
Chinese exporters are moving away from the American dollar as rising labor and material costs are cutting into their profits.
The Financial Times cited the CEO of B2B company Web firm Alibaba.com, who said that the vast majority of the 700,000 Chinese suppliers are no longer using U.S. dollars to take care of non-U.S. transactions.
"They are moving to euros, pounds, Australian dollars or even quoting prices in renminbi (yuan)," CEO David Wei told the "Times."
Another drawback is when prices are quoted in U.S. dollars, they are now only valid for a seven day period, in contrast to the former 30-60 day periods.
So far in 2008, the yuan has climbed 3 percent against the dollar, but has declined against most other major currencies.