When you buy in renminbi (RMB) but sell in euro (EUR), every tick in the exchange rate either fattens—or thins—your profit. In the first half of 2025 alone, the euro swung from ¥7.44 to ¥8.40, a 9 % appreciation against the yuan exchange-rates.org. If your purchase price is locked in RMB, that kind of move can shift margins by double digits overnight.
1. Why Currency Moves Matter More Than You Think
| Cost element (paid in RMB) | Share of landed cost* | FX sensitivity |
| Factory price | 55 – 65 % | High |
| Inland logistics | 6 – 10 % | Medium |
| Export paperwork | 1 – 2 % | Low |
*Typical consumer‑goods profile sourced through Eurasia Consultis.
A stronger euro (higher EUR/CNY) lowers your euro‑denominated cost of goods, boosting margin. A weaker euro does the reverse.
2. A Quick Illustration
100 RMB unit cost
• When €1 = ¥7.44 → €13.44
• When €1 = ¥8.40 → €11.90
That €1.54 difference is 11.5 % of selling price if you target a 30 % gross margin—enough to erase a full third of your profit.
3. 2025: A Volatile Year in Three Phases
- January – February: Euro dips below ¥7.50 amid ECB rate‑cut talk.
- March – April: Rapid rebound to ¥8.40 after strong EU PMI data exchangerates.org.uk.
- May – June: Range‑trading around ¥8.00 while markets weigh PBoC stimulus.
Lesson: locking prices for 6–12 months without an FX plan is gambling with your balance sheet.
4. Five Tactics to Defend Your Margin
| Tactic | How it works | Typical benefit |
| Quote in EUR, pay in RMB | Fix the unit price in € at order signature; hedge the RMB leg separately. | Removes FX noise from your sales P&L. |
| Forward contracts | Bank locks today’s EUR/CNY for future payments. | Cost certainty up to 12 months. |
| Natural hedging | Match RMB payables with RMB receivables (if you export to China). | Zero premium. |
| Currency‑split payments | Pay deposit in RMB, balance in € at spot. | Cuts exposure by ~50 %. |
| Regular re‑quoting | Ask suppliers for quarterly RMB & EUR quotes; choose best combo. | Captures favorable moves without full hedging fees. |
5. How Eurasia Consultis Helps Clients Stay Ahead
- Live FX dashboards inside our purchase‑order tracker.
- Scenario costing: every quote shows breakeven exchange rates.
- Bank‑agnostic hedging support: we coordinate with your treasury or recommend EU‑licensed brokers.
- Payment scheduling tied to forward contracts—no surprise cash calls.
Final Takeaway
In volatile years like 2025, the cheapest RMB unit price can quickly become the most expensive once exchange rates shift. That’s why more importers are securing quotes and signing contracts directly in euro—locking in their costs from the start. By doing so, you shift the currency risk to the supplier and protect your profit margins from unexpected swings.
Bottom line: quoting and paying in your home currency gives you price stability and better control over your bottom line. When managed right, FX risk doesn’t have to be a threat—it can be an opportunity.