Export Enterprises In June 22Nd: Pick Up Long Term Foreign Exchange Settlement And Lock Up Risks Early

On Monday, the renminbi fluctuated against the US dollar for the most intense 1 and a half years. In the morning, the price of the RMB traded against the US dollar rose to 6.7971 at about 5 p.m., which rose by nearly 300 points compared with the opening price. "This is the most volatile trading day of the RMB against the US dollar this year." Ying Jun, the provincial branch of the industrial and Commercial Bank of China, said that since the financial crisis, the real exchange rate of RMB against the US dollar has been maintained at around 6.82, with little fluctuation.

Faced with exchange rate fluctuations, how do people with foreign exchange and a large number of import and export enterprises cope with this change?

Remittance: do not hold a large amount of US dollars at hand.

When the foreign exchange trading center opened yesterday morning, the central parity of RMB against the US dollar was 6.8275. After more than an hour, it began to fluctuate violently, and the fluctuation rate was 4% at the end of the afternoon. Almost 5%. The daily fluctuation limit. As a senior foreign exchange trader, Ying Jun of the International Business Department of 4.28,0.11,2.64% branch of Zhejiang industrial and Commercial Bank received several clients' enquiries yesterday: should foreign exchange be paid at hand?

"My proposal is to take the initiative in early settlement and exchange rate reform, and continue to push forward the exchange rate reform. The RMB exchange rate will be changed from a dedicated US dollar to a basket of currencies. From the current general trend, the appreciation of the renminbi is a trend, even though there is no possibility of a pullback." Ying Jun said that during the period when the exchange reform started, the appreciation of the renminbi was fast. The exchange rate has changed little over the past two years, and people with dollars are not very sensitive. "Now each person has an annual amount of $50 thousand for private purchase of foreign exchange, so it is very convenient to study abroad or to visit relatives and buy foreign exchange, so the citizens do not need to leave too much foreign currency on hand."

Since July 2008, the exchange rate of RMB against the US dollar has basically maintained at around 6.82. Now, the people's Bank of China has decided to further push forward the reform of the RMB exchange rate, which means that the pace of foreign exchange reform will continue in 2005. "Our estimate of the appreciation rate is more conservative, generally speaking, it will increase slightly, step by step." Ying Jun thinks. A large amount of US dollar held by the public still has some risks. We suggest that it be concluded as soon as possible.

Export enterprises: choice of forward selling and foreign exchange locking risks

Mr. Zhang, a company in Hangzhou, is very sensitive to the fluctuation of RMB exchange rate. Recently, he has just signed a purchase order for domestic enterprises, and the renminbi has appreciated again. Mr. Zhang decided to postpone the import order for a few days. "If the RMB appreciation is more obvious in the short term, I can make more money on the exchange rate."

Another textile exporters in Xiaoshan are considering whether to transform into domestic trade. "At present, the profit of textile exports is very thin. Once the RMB appreciates and the export cost is higher, the enterprises will not survive." The person in charge of the enterprise seemed helpless.

According to Ying Jun, for export enterprises, to prevent the risk of exchange rate fluctuations, it is necessary to adopt the forward settlement and sale business of banks as early as possible. The customer and the bank sign a forward settlement and sale contract, which stipulate the currency, exchange rate and time limit for foreign currency in the future for settlement or sale of foreign exchange. According to the reporter's understanding, after the start of the reform in 2005, there are more and more enterprises that choose forward selling and remittance business, such as the Bank of China Zhejiang branch. In 2007, the volume of forward settlement and foreign exchange transactions increased by 3 times than that in 2006. But after July 2008, as the RMB exchange rate remained unchanged against the US dollar, the volume of business in 2009 declined by 1/3. "In the early stage of the new round of RMB appreciation, enterprises should still choose the risk of long-term foreign exchange settlement and sale."