Silicon Valley Bank collapsed! The US dollar exchange rate plummeted, and sellers’ withdrawals were delayed

Silicon Valley Bank collapsed! The US dollar exchange rate plummeted, and sellers’ withdrawals were delayed

Last Friday, a piece of news shocked the US financial circle. Silicon Valley Bank, the 16th largest bank in the United States, announced bankruptcy. This caused a huge uproar, and many people even predicted whether a new round of financial crisis was coming.

 

What impact will this incident have on the US e-commerce industry?

 

It is understood that in the past 40 years, Silicon Valley Bank has become the preferred bank for many start-ups after obtaining large amounts of financing, including some big sellers in the e-commerce industry.

 

Given how closely the startup ecosystem is tied to Silicon Valley Bank, even companies that don’t have money on deposit with the bank are concerned about whether it will affect their business.

 

For example, if an e-commerce company's payment network partner uses Silicon Valley Bank, it will definitely have more or less impact on its own business.



It is reported that Shopify and Etsy are both major customers of Silicon Valley Bank. Many sellers suspect that the recent withdrawal delays are related to this incident. Many sellers have posted on the forum asking whether they need to temporarily shut down the Shopify Payments function.

 

Shopify has not yet responded to these posts, but Shopify's CEO posted a message on his Twitter account, saying that the company has very little funds in Silicon Valley Bank, so the impact on the company's operations is very "limited." However, he did not specify how this would affect sellers.

 

At 6 p.m. last Sunday , Shopify's CEO retweeted a letter sent by Shopify to merchants on Twitter, stating that it could provide assistance to sellers using Silicon Valley Bank, but still did not specify whether the delayed payment was related to the bankruptcy of Silicon Valley Bank.

 

In addition to Shopify, several Etsy sellers also said that withdrawals were delayed. Some sellers posted that they would temporarily change their stores to "vacation mode" until they could sort out the problem.

 

However, some e-commerce related companies have released clearer information: The CEOs of Poshmark and Payoneer both announced that their users' funds will not be affected by the collapse of Silicon Valley Bank.

 

From the current perspective, the impact of the collapse of Silicon Valley Bank on the e-commerce circle is relatively limited, and withdrawal delays are also isolated incidents. Most sellers have not encountered this situation.

 

However, the US dollar suddenly plunged today. The RMB central parity rate against the US dollar was 6.9655 last Friday, and today the RMB central parity rate against the US dollar was raised by 280 basis points to 6.9375. As of press time, the RMB against the US dollar was 6.8755.

 

Some industry insiders speculate that the Federal Reserve may slow down the pace of interest rate hikes due to the Silicon Valley Bank incident, and the US dollar index may fall even more significantly in the next 3 to 6 months.

USA

E-commerce

Silicon Valley Bank

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