We have the same situation with you ,I come from china ,The US dollar in china is depreciate day by day . from last month 1$=7.3 RMB last month to 1$=7.1..RMB ..
we are in export dept ,,so the quotation become hard and hard if we still use US dollar .....
I don't know if the buyers accept Europea dollars ....
hope there have some one could give us good suggestion.
Hi
I'm Australian. It doesn't matter what currency the goods are advertised in, as long as the price is there. I still have to convert the amount. I'm sure it goes for the other non-US buyers as well. We still have to convert. The US buyers will just have to learn a bit of maths ;)
Give the quote in the buyer's currency instead of US. Whatever it is you are charging in your currency and convert it to the buyer's currency. That way you know exactly what it is you are charging and the buyer knows exactly what it costs them. If they are non-US citizens, they don't have to convert. You've done the work for them!
My personal preference is: I would prefer the price to be in the currency of the country the goods are being sold from rather than in $US all the time. That way I get to know the international currencies and their exchange in relation to my own dollar.
No point being an international trader when I don't know what other currencies (and their exchange rates) exist apart from my own, $US and GBP!
Cheers, hope that has helped a bit.
Thank you much for your message. Yes, you got my question. What I am asking the experts suggestion is : What will happened if we quote in buyer's currency? ( Examples :For Dubai: in UAE Dirham . For Kuwait : in Kuwaiti Dinar , for Kenya ; in Kenyan Shilling) . What will be the hurdles? I request the experts to answer my question.
You may negotiate with your buyer or seller before formal contract. We may quote in EUR as it is one of the best currenies worldwide. Both buyers and sellers should take a best currency for future orders.
There is no law anywhere that says you have to do quotations in any particular currency.
You can quote a customer in whatever currency the 2 of decide on. If they are in Australia you can quote $A. If they in in South Africa you can quote in Rand.
As long as the 2 of you agree on what currecny you wish to work in you can do it any old way you please.
USD and Euro are just the 2 major ones used. Its not a legal requirement in any way.
Quoting from [ramanamurtytv]:
I am from India. In general all the importers ask the quotation in USD. or Euro. As the US Dollar is depreciating with Indian currency, we could not able to quote a competitive price with US and middle eastern countries. My question is, if we quote in other country currencies, what are the pros and cons? What will happened if we quote in buyer's currency? ( Examples :For Dubai - in UAE Dirham; For Kuwait - in Kuwaiti Dinar; for Kenya - in Kenyan Shilling) . What will be the hurdles? I request the experts to answer my question.
Based on the scenario that you provided I believe you will still be taking foreign exchange risk when you convert say the Kuwaiti Dinar to other currencies. Depending on whether the Dinar appreciates or depreciates against other major currencies that risk will still be there when it is converted for example, into euro, US dollar or other hard currencies.
Hi Sir,
For my own opinion i think US$ quotation is the universal prices, in shipping cargos and in airlines and other business in every part of the globe US$ currency is easy to change. Because if other currency use the airlines and shipping rates and banks transfer there will be be little problem for the convertion since every country has different conversion for its currencies.
Thank you.
I hope this suggestion help . Thanks.