Entrepot trade does not necessarily have to be in the same currency. Entrepot trade involves three parties. In actual business, it is common to use different currencies in the purchase and sales links. For example, Zhongshitong settles the purchase of goods from the United States in US dollars, and when reselling to European customers, since European customers are accustomed to settling in euros, euros can be used. This mainly depends on factors such as the negotiation among the trading parties and market conditions.
On the one hand, from the perspective of convenience, if the countries or regions where the trading parties are located have a close connection with a certain currency, they will tend to use that currency. For example, in the US dollar area, many trades are settled in US dollars, which is convenient for settlement and exchange rate risk control.
On the other hand, exchange rate fluctuations also affect the choice of currency. If it is predicted that the exchange rate of a certain currency is stable or has an upward trend, the trading parties may choose that currency for settlement to avoid exchange rate losses. In short, the choice of currency in entrepot trade is flexible, with the principle of meeting the needs of all parties and reducing risks.
Professional consultant answers
Amanda YangYears of service：3Customer Rating：5.0
Cost control consultantConsult
Entrepot trade does not necessarily have to be in the same currency. Entrepot trade involves three parties. In actual business, it is common to use different currencies in the purchase and sales links. For example, Zhongshitong settles the purchase of goods from the United States in US dollars, and when reselling to European customers, since European customers are accustomed to settling in euros, euros can be used. This mainly depends on factors such as the negotiation among the trading parties and market conditions.
On the one hand, from the perspective of convenience, if the countries or regions where the trading parties are located have a close connection with a certain currency, they will tend to use that currency. For example, in the US dollar area, many trades are settled in US dollars, which is convenient for settlement and exchange rate risk control.
On the other hand, exchange rate fluctuations also affect the choice of currency. If it is predicted that the exchange rate of a certain currency is stable or has an upward trend, the trading parties may choose that currency for settlement to avoid exchange rate losses. In short, the choice of currency in entrepot trade is flexible, with the principle of meeting the needs of all parties and reducing risks.
Emily LiuYears of service：10Customer Rating：5.0
Settlement and payment expertConsult
It is not necessary to be in the same currency. Entrepot trade involves multiple parties. Everyone chooses the currency based on their own interests and habits. As long as both parties reach an agreement, different currencies are no problem. For example, it is feasible to use Japanese yen for purchasing from Japan and South Korean won for selling to South Korea.
Sarah ZhangYears of service：8Customer Rating：5.0
Document expertConsult
Of course it is not the same currency. For example, if you purchase ores from Australia in Australian dollars and resell them to Brazil, and Brazil pays in reais, such cross-currency operations are very normal in entrepot trade, as long as issues such as exchange rates are negotiated well.
Michelle ChenYears of service：3Customer Rating：5.0
Business coordination consultantConsult
Entrepot trade does not necessarily have to be in the same currency. Different countries and regions have different currencies. For the convenience of transactions, different currencies can be chosen for settlement according to the wishes of both parties, as long as the exchange rate and cost are calculated well.
William YangYears of service：5Customer Rating：5.0
International logistics consultantConsult
It is not necessary to be in the same currency. In international trade, many entrepot trades use different currencies in the purchase and sales to meet the needs of different customers, mainly considering factors such as exchange rates and local habits.
Elizabeth LiYears of service：3Customer Rating：5.0
Compliance and risk managerConsult
Entrepot trade does not force the use of the same currency. If the trading parties have their own preferred currencies and can handle issues such as exchange rate conversion well, settlement in different currencies is completely possible and very flexible.
Andrew HuangYears of service：7Customer Rating：5.0
Supply chain optimization expertConsult
It is not necessary to be in the same currency. In entrepot trade, using different currencies in the purchase and sales can better meet the interests of all parties. For example, using pounds for purchasing from the UK and baht for reselling to Thailand is a common operation.
Robert ChenYears of service：6Customer Rating：5.0
Customer service consultantConsult
Entrepot trade does not require the use of the same currency. Because the trade involves diverse national currencies, choosing currencies according to the wishes of both parties can promote the smooth progress of the trade, as long as the exchange rate fluctuations are considered well.
David LiYears of service：6Customer Rating：5.0
Senior customs declaration consultantConsult
Of course it is not the same currency. According to the actual trading situation, all parties can negotiate and choose different currencies to conform to their respective commercial interests and habits.
Jennifer WangYears of service：4Customer Rating：5.0
Market development consultantConsult
There is no mandatory requirement for the currency in entrepot trade. It is common to use different currencies in the purchase and reselling, mainly depending on how the trading parties negotiate.