Question

How does foreign exchange Reserves affect the payment to the US Exporter?

Answer 1

For U.S. firms that sell a lot of goods to other nations, a strengthening dollar will mean trouble. Because their goods are priced in dollars, foreign buyers and companies who have to pay for them in other currencies are making these exports more costly. Even, as they exchange foreign earnings back to dollars, the amount of the earnings they earn on export revenues decreases.
But the attractive exchange rate of the currency can have affect U.S. businesses at home. That's because American consumers are willing to purchase manufactured items for less dollars while the dollar is high , making American-made items more expensive in comparison.
While this makes it look like as the dollar weakens, U.S. corporations profit, the truth is not so clear. Compared to other currencies, as the dollar declines in value, the price of imported raw materials such as steel increases in price and goods such as automobiles made in the United States will cost more to produce

With all these considerations at stake, a SME engaged in import or export undertakings may be inclined to merely alter its rates to prepare for, and leave behind, currency exchange rate swings. Economists, though, advise first worrying about how a price shift would affect the relationship between the company and its customers.6 If import costs escalate and the company keeps its prices stable, it may help to raise its market share. It could be able to compensate if the company decides to increase its rates by providing improved deals or higher quality of service. If, example, the increase of the dollar against the yen makes it more difficult for Japan to export, there might be other markets with stronger currencies where the firm can take up the slack.