Devaluation Of The Euro Triggered Panic In Foreign Trade

"We only accept US dollar orders now, and euro orders will not be answered."

Devaluation of the euro triggered panic in foreign trade

In June 2nd, when the press deadline was written, the euro reached 1: 8.3706, which continued to decline.

In a short period of six months, the exchange rate of the euro declined against the RMB exchange rate. After breaking through the "10" mark, it broke the "9" again and again, and now it is holding the momentum of Yu Yong. It has launched a wave of breaking the "8".

Recently, due to the impact of the European debt crisis, the depreciation of the euro has reached about 15%, which has aroused many domestic and foreign trade enterprises panic.

"We had exported a product worth about 1000000 euros, and we lost it. This has strengthened our determination to settle in US dollars."

Mr. Lee said that although the dollar was devalued and unstable, it has now found that the euro is more unstable.

In the light of the current situation, the European economic recovery will be more difficult due to the European debt crisis, which is likely to have a significant impact on the euro trade in the second half of the year.

Mr. Wang, a leather trader in Shanghai, said that due to the signing of several Euro orders at the end of last year, it is really hard now.

"The export to the US this year will not fill the deficit in Europe," he said.

{page_break} RMB appreciation expectations increase

"The depreciation of the euro is not the only bad factor. Now, another crisis comes from the expectation of RMB appreciation."

Lee said that the company's export business has exceeded last year's total, reaching about 70000000 US dollars, but its profit has dropped sharply.

"There is a steady stream of orders over the past two days. However, it is estimated that there will be a significant reduction in the second half of the year."

Mr Li said that the company's exports seemed to be "very hot" now. It did not seem to have been affected by the financial crisis. But in fact, the huge increase in orders did not bring high profits.

He said that the reason for this is that European customers had strong expectations in the first half of the year, that the renminbi would appreciate, so the order was concentrated in the first half of the year. On the other hand, due to a substantial reduction in prices, the increase in orders and profits did not increase.

"Appreciation of the renminbi will be a fatal blow to foreign trade."

Gu Xinyi, chairman of Shanghai de Lun te, said that the appreciation of the renminbi is very serious for the domestic market depreciation. If the RMB value is not maintained, the profit prospects of the export enterprises will be very confused.

Or drag on China's economic growth

At present, the products of our export EU mainly include Electromechanical, electronic products, textiles, clothing, shoes and hats, among which mechanical and electrical products account for about half of the sales of export products. The depreciation of the euro will cause a certain impact on the export of these products. In the short term, the export products will become more "expensive", which greatly reduces the competitiveness of Chinese products.

"In fact, the proportion of Chinese products in the EU is relatively high, making these countries have a certain dependence on Chinese products. It is unrealistic to replace them with other products in the short term."

Song Liang, an analyst at China commercial productivity promotion center, said there was no need to be too pessimistic about the devaluation of the euro.

Song Liang said that at present, China is in a period of pformation, and external pressure will help speed up the pace of industrial pformation in China.

The worst reason is that the unemployment rate has reached the highest level in 12 years because of the EU's economic downturn. Even if the euro does not depreciate, the overall consumption power will also decline, not only by Chinese enterprises.