The Effect Currency Evaluations have on the MFP industry

The Chinese YUAN has only marginally changed in the last 12 months compared to the USD.

I have read on CNBC that this could be as much a result of Chinese Govt manipulating their currency on the world market to be undervalued to encourage exports.

While it is probably fair to say that the majority of new copiers/ printers in the world are now manufactured in China, these facilities are owned by Japanese companies.

If you check the price changes between the Aficio C7500/C6000 and C7501/C6501 it may suggest that Ricoh is adjusting for currency rates.

The mainframes are up around $4k and $7k respectively and MSPRs for most inherited options are up by about 15%

quote:

Originally posted by SalesServiceGuy:
The Canadian $1.00 is now slightly above the USD.

Hrmm, the Canadian dollar was trading slightly above the US dollar for two months in 2008 but not "now".

It's close but USD is still worth more than CDN.

It was briefly at $1.0030 earlier this week. It is now at $0.975.

It should be around $0.89 but because the US Govt is running massive deficits Canada looks good. If China ever pulls the plug and calls in its US Bonds, it will not be pretty.

China won't pull in it's bonds since it would ruin the US economy and China would lose one of it's largest if not the largest trading partner.

seems like EU is the largest trading partner for China, at lease as of 2008 http://english.mofcom.gov.cn/a.../20090105999698.html

I'd say if you want to look at the EU as a single trading partner, you'd need to consider Canada-Mexico-USA as a single entity as well.

It is ironic that Communist China has the ability to cause significant damage to the world's greatest democracy with the capitalist concept of debt.

Anyway not to get political, copier prices might soon be rising simply because of the powerful forces of currency change.

The Japanese Yen has reached a 15 year high against the USD forcing all Japanese companies to intensify their efforts to manufacture their products abroad.

Japan Iron and Steel Federation Chairman Eiji Hayashida said at a regular press conference that an exchange rate of around 90 yen against the dollar is appropriate for fair global competition.

"The (current) exchange rate in the 81 yen range is very harsh when (Japan's) present economic conditions and the competitiveness of (Japanese) companies are considered,"

Toshiba recently revealed that it actually profited from the strengthening of the yen that took place during the first half of its fiscal year through September. The company has apparently moved much of its manufacturing and product sourcing outside of Japan since 2009, resulting in the yen's rise positively impacting its earnings.

Toshiba made 48 percent of its products in Japan between April to September 2009 and bought 45 percent of its components from Japan-based suppliers. By the same period this year, these ratios were down to 44 percent and 42 percent, respectively. This shift in manufacturing and sourcing reportedly added 4.2 billion yen ($52 million) to Toshiba's operating profit during its fiscal first half that ended in September, or 700 million yen ($8.6 million) for each one yen increase against the dollar. Last year, Toshiba lost 800 million yen ($9.92 million) for each one yen increase against the dollar.

The strengthening of the yen against the dollar has had a significantly worse impact on most other Japanese manufacturers' earnings.

Dollar Hits All-Time Low vs Yen, Falls Below 78

The dollar sharply extended its losses versus the yen to trade below 78 in late New York trading on Wednesday amid concerns over a nuclear crisis in Japan.

The dollar [JPY=X 77.35 -3.38 (-4.19%) ] hit as low as 77.60 yen on trading platform EBS. The previous record low was 79.75 yen set in April 1995.

Traders are nervously watching whether the Bank of Japan will intervene in the currency market to stem yen gains. A stronger currency makes Japanese exports less competitive and hurts the economy.

As Japanese copiers manufacturers approach their March 31 year end, they will soon have to lock in their exchange rates for the next six month period. Timing could not be worse with a soaring yen.

Looks like everyone agrees: G7 takes steps designed to weaken the Yen
http://www.thestreet.com/story...-weaken-the-yen.html