Where the Exposure Comes From
Most China-based manufacturing quotes are USD-denominated, but underlying factory costs are RMB-based, meaning exchange rate movement between your quote date and payment date can shift the factory’s effective margin and, over time, future quote pricing.
How Buyers Manage It
Locking pricing for a defined period within your PO terms, and planning payment timing around known currency volatility windows, are common ways experienced importers reduce unpredictable cost swings on larger orders.