Pinghu Enterprises Fight For Domestic Sales And Avoid Foreign Trade Risks

Recently, eurozone debt has been affected by this year.

With the fluctuation of RMB's "high price", cross border trade settlement pilot and exchange rate reform new policies and other measures have also been introduced. For this reason, many export oriented enterprises such as clothing, bags, hardware and so on in our city have adopted "Wu Yi" to evade single risks, while minimizing losses and maximizing the profit margins.

During the interview, many garment processing enterprises said that the exchange rate was 6.85 at first when they signed contracts with foreign merchants, when the amount was 1 million dollars, so that enterprises could get 6 million 850 thousand yuan according to the exchange rate at that time.

But when the time of delivery, the RMB exchange rate has become 6.8, so that the actual amount of money that the enterprise can get will turn into 6 million 800 thousand yuan, and the change of exchange rate will make the enterprise lose 50 thousand yuan on the ground.

Wang Weijia, chairman of Zhejiang IIF Textile Co., Ltd., told reporters that although the size and order of this year need not worry, but since the company's external processing OEM production game, especially since this year, clothing exported to the United States has been led by the dollar.

In the unstable state of foreign trade processing margins, IIF has gradually increased its autonomy since the beginning of this year.

"The profit rate of foreign trade enterprises is generally low, and the fluctuation of exchange rate often brings great loss."

General manager of several luggage enterprises in new Dai town said that the euro fell and the appreciation of the RMB continued to revolve around the US dollar. It was more prudent for enterprises to choose loans in US dollars, and signed a long-term exchange agreement with the renminbi through US dollar loans, thereby avoiding exchange rate risks, locking paction costs and improving enterprise's ability to resist risks and profitability.

The relevant professionals of the Pinghu branch of the Bank of China have also reminded entrepreneurs that the RMB exchange rate will undergo a new mechanism reform in the near future, and that the US dollar swap agreement will be reestablished. The RMB exchange rate peg to the US dollar may change over the past year, which is a risk for US dollar holding enterprises. Once the renminbi rises against the US dollar, their dollar will be depreciated.

Cross border trade is also feasible for RMB settlement.

RMB appreciation will be settled in RMB, which is a good choice to avoid risks in the export business.

Pinghu Fang Fa Hardware Co., Ltd. is located in the lake street of our city. It is a small enterprise. All the hardware products such as nuts, screws and so on are exported.

Because the production cycle is relatively long, the exchange rate between the contract and the payment tends to vary greatly.

Li Genfa, general manager of the company, told reporters that some small country customers in Western Asia and South America agreed to use RMB to settle accounts, which ensured the relative stability of the foreign trade profits of the company.

During the interview, executives of many export enterprises such as clothing, bags, hardware and other industries also indicated that RMB settlement is feasible.

Regarding this, Qian Lianghua, director of the foreign trade and Economic Cooperation Bureau, believes that the demand for RMB settlement by foreign trade enterprises is bound to be great. Under the current situation of financial crisis, cross-border trade RMB settlement can reduce paction costs and maintain steady growth of foreign trade, but to a large extent, it depends on the outcome of negotiations and coordination in trade.