U.S owned company exchanging to RMB???
- Joined: May 12th, 2008
- Posts: 4,060
Since I'm clueless about this topic, but interested to know why after a conversation today...
Why would a foreign owned language company, which generates it income here and operates here, exchange U.S$ to RMB for paying it's employees?
What would be the obvious reasons?
Sometimes the same is different, but mostly, it's the same.
silkywave
Re: U.S owned company exchanging to RMB???
If they pay US dollar to their employees, will increase the complexity for them to exchange it back to RMB.
Paying with circulating medium is humanistic.
ur hot..is that why ur sweating?
wave
Re: U.S owned company exchanging to RMB???
They're having trouble themselves in exchanging the money to RMB, and that's why none of their employees are getting paid.
Are they not generating enough income to pay in RMB?
Obviously the customers pay in RMB, so what's behind the green door?
Sometimes the same is different, but mostly, it's the same.
silkywave
Re: U.S owned company exchanging to RMB???
Suppose there are 100 employees in the company, if the company give US dollars to them, there would be 100 people visit bank to exchange.
But the company can solve it once for all.
And in fact, since the companies do business in china, so the customers are possibly from china, they get paid by RMB too. They have RMB in fact.
ur hot..is that why ur sweating?
wave
Re: U.S owned company exchanging to RMB???
FFS Slicky, that's my point. They get money from their customers here in RMB, but don't use it to pay their employees.
So what am I missing?
Is there some financial facet to this I'm not aware of?
Sometimes the same is different, but mostly, it's the same.
silkywave
Re: U.S owned company exchanging to RMB???
You mislead me.
The fact is that the foreign companies pay local employees with RMB.
I am consistent with my point.
Not sure what's your question.
ur hot..is that why ur sweating?
wave
Re: U.S owned company exchanging to RMB???
Double FFS.
Ok. Let's try this again.
Why would they rely on the money which needs to be exchanged from U.S$, when they could use the money paid from the customers which is already in RMB?
You're killing me Slicky.
Sometimes the same is different, but mostly, it's the same.
Monkey King
Re: U.S owned company exchanging to RMB???
Best guess I can give you is that it's a cashflow thing.
They spent the RMB revenue on operating costs, capital, etc, and therefore need to transfer USD to cover salaries.
Really, that wouldn't be uncommon, especially for a new company that isn't generating a profit yet.
Happy New Year 2Bi! I hereby grant you early release for a month of good behavior.
Don't violate your parole though, naughty naughty!
wefrucar
Re: U.S owned company exchanging to RMB???
Could be legal.
Could be accounting.
Could be insufficient RMB cashflow.
Could be bureaucratic stupidity....
Sometimes I feel it is maybe unbearable always be traditional Chinese girl.
silkywave
Re: U.S owned company exchanging to RMB???
I see now.
Really?
I am not aware of it.
I am not an accoutant.
ur hot..is that why ur sweating?
wave
Re: U.S owned company exchanging to RMB???
Thank you MK and Wef.
Maybe it's the cashflow. They have opened some new centers so maybe there's more going out than coming in.
Slicky, as usual you're as useless as breasts on a bull, but thanks all the same.
Sometimes the same is different, but mostly, it's the same.
silkywave
Re: U.S owned company exchanging to RMB???
How useful you are?
You are welcome.
ur hot..is that why ur sweating?
wave
Re: U.S owned company exchanging to RMB???
I'm as useful as a vibrator at the women's military barracks.
Sometimes the same is different, but mostly, it's the same.
silkywave
Re: U.S owned company exchanging to RMB???
ur hot..is that why ur sweating?
slonios
Re: U.S owned company exchanging to RMB???
there is a government institution called SAFE,they control the currency exchanging in China mainland.their duty is to protect the China's RMB policy which is keeping the RMB exchanging rate stable