2.2.5　Foreign Exchange Risk外汇风险

Fluctuation of foreign exchange influences how much you realize in sales proceeds.In most cases,you sign the contract at a time but get paid some time later.This lag in collecting payment is vulnerable to fluctuation of exchange rate between a foreign currency and RMB.For example,If USD depreciates against RMB after you sign the contract,you cannot expect to realize as much revenue as in the contract once you convert Dollar to RMB.