Court: Guangzhou Maritime Court (2025)
Facts: A Dongguan furniture exporter (plaintiff, a major Guangdong exporter) contracted with a US company for USD settlement, payable 30 days after arrival. After shipment, RMB appreciated sharply against USD, causing about 250,000 RMB in exchange loss on conversion. The plaintiff sued the US buyer; the defendant argued exchange risk rests with the seller.
Holding:
(1) General rule: absent a contractual exchange-risk allocation, the recipient generally bears exchange fluctuation risk;
(2) Exception: if fluctuation exceeds normal commercial risk coupled with deliberate delay by one party, the court may adjust on equitable grounds;
(3) Since the US buyer did not delay payment and the fluctuation was normal commercial risk, the claim was dismissed.
Significance:
· Clarifies exchange rate risk allocation rules, providing financial risk guidance for Guangdong exporters;
· Recommends contractual exchange-risk clauses such as fixed rates or adjustment mechanisms;
· Reflects the court's reasonable delineation of commercial risk, balancing buyer and seller interests.