RMB Exchange Rate Test Pingyang Leather Foreign Trade Enterprise

Since the reform, the appreciation of RMB has gone from small step to fast run.

In April 10th, the exchange rate of RMB against the US dollar closed at 6.9916, declaring the RMB exchange rate officially entered the "6" era. On the 30 day, the RMB exchange rate returned to 7.0015.

After the May 1 holiday, it continued to fall. The RMB exchange rate of the interbank RMB exchange rate announced by the China foreign exchange trading center on the morning of 6 was 6.9888 yuan to one dollar, and then fell below the "7" mark.

Then how will the first foreign trade enterprises respond?

It is understood that our county currently has more than 100 foreign trade enterprises, mainly engaged in leather, machinery and electrical, textile, automobile parts, chemical, metal products, pet products and other industries, the impact of different industries are significantly different.

According to the survey, more than 60% of textile and garment manufacturers thought that the "big impact" or "great impact", and electromechanical, auto parts and other industries because of the export tax rebate has not been adjusted, the impact is relatively small.

"It's coming too fast."

Chen Li, Ministry of foreign trade of Wenzhou Construction Machinery Co., Ltd.

The most direct impact of RMB appreciation on enterprises is the decline in profits.

He counted the accounts for the reporters. If he and foreign businessmen discussed the good price was calculated according to the exchange rate 7.4000, but when the end of the month was recovered, the exchange rate dropped to around 7.2000, and the business of the 20 thousand dollar directly lost 4000 yuan.

Although the exchange rate factor has been taken into account in the pricing of contracts, the pricing of the contract is particularly difficult because the appreciation of the renminbi is too fast.

While lamenting the decline in profits, enterprises began to actively seek a way out.

Sharing losses from the appreciation of the Renminbi with customers is a dangerous way of thinking for many exporters.

According to the relevant officials of the County Foreign Trade Bureau, some export enterprises in our county are well prepared. When they signed the contract after September this year with foreign businessmen two or three months ago, they deliberately increased the unit price of export products to avoid exchange rate risk.

Taking the textile industry as an example, the chemical fiber cloth increased from 70 cents per meter to 73 cents, an increase of 4.2857%.

If the exchange rate of US dollar to RMB 1: 7.3 is the benchmark, if the exchange rate of US dollar against RMB is 1: 7 after September, it can avoid trade risk to a certain extent.

"But competition is fierce. Raising the unit price is a risk of losing customers."

The person in charge said.

Changing the way of settlement may be one of the quickest ways to reduce exchange risk.

Some companies said that they did not use dollar bargaining and settlement for most non US buyers during the paction, instead of using the euro, pound sterling, Australian dollar or RMB bargaining and settlement.

Even if the US dollar is negotiated, its validity period should be shortened from 7 days in the past 30~60 days.

Some enterprises also lock in the exchange rate of RMB against the US dollar in order for delivery in 3 months.

In this regard, some enterprises have said that this year has abandoned the "forward settlement" method in previous years, and adopted the "sight letter of credit".

The long term contract signed with foreign businessmen will be changed to a short-term contract, and a long-term letter of credit issued by a customer can be paid instantly by means of financial instruments, only 1% of the bank's handling fee will be paid to the bank.

The relevant officials of the county's foreign trade and Economic Cooperation Bureau also actively put forward ideas for foreign trade enterprises, suggesting that foreign trade enterprises can ease the pressure of RMB appreciation by way of expected price increase, expediting export realisation, additional price terms and using foreign exchange value hedging products.