Should a charger quotation be in USD or RMB, and who carries the exchange-rate risk?

Main answer · Wecent Editorial Team

Short answer: Whoever’s currency is not used carries the exchange-rate risk between the quote and the payment. A USD quote usually gives a US or Canadian buyer a fixed cost, while the factory takes the RMB risk and may build in a margin. An RMB quote can look cheaper but exposes you to currency swings. Agree currency, validity and a clause for large moves.

The basic rule

The currency of the quote decides who takes the risk. If you pay in USD, you know your cost. The factory sells in USD but pays costs in RMB, so a change in the rate affects its margin. If you pay in RMB, the factory knows what it earns and you carry the risk when you convert your own currency.

Option 1: Quote in USD

• For the buyer: clear cost, simple budget, easy comparison between suppliers.
• For the factory: risk from RMB movement, so it may add a buffer to the price or shorten the quote validity.

Option 2: Quote in RMB

• For the buyer: may look cheaper, and you may benefit if your currency strengthens. But you carry the risk of a weaker currency, and may need to open a way to pay in RMB.
• For the factory: certain revenue, which may give a better price.

Terms to agree

1. Currency and payment method.
2. Quote validity. For example 7 to 30 days, since both costs and rates move.
3. Rate basis, if a conversion is needed: which rate, from which source, on which date.
4. Adjustment clause. For orders with long lead times, a rule that the price changes if the rate moves more than a set percentage.
5. Payment timing. The longer between order and payment, the more the risk.
6. Deposit and balance dates.

Comparing quotes

Convert all quotes to one currency at the same date, and add the cost of payment fees and exchange spreads. A lower RMB price may disappear once you add conversion costs and risk.

Managing risk

Your bank or finance team may offer forward contracts or other tools, to fix the rate for future payments. Ask them what is available and what it costs. Larger orders justify more attention.

Be fair

Both sides gain from a stable relationship. A very large swing may need a conversation, not just a clause. Keep notes of what was agreed.

Quick summary

Choose the currency that matches your budget, set validity, and add a clause for large moves.

Where this answer says to confirm with Wecent, the detail is not published on the product page and has to come from the datasheet or the factory. General facts come from the regulators, standards bodies or device makers named in the text.