RMB Exchange Rate Reform Is About To Restart &Nbsp; Textile Enterprises Are Anxious About It (Two)

RMB appreciation in 5 years 20%

At the beginning of the reform in 2005, the central bank has given 7 missions. The most important thing is that it is too high to rely on exports.

However, this overbearing expectation has not been successfully achieved, and foreign exchange reserves have risen from $800 billion at the end of 2005 to more than $2 trillion at the end of last year.

So far, the US dollar has appreciated by 20%.

20 years GDP increased by 9.7%

Before the reform and opening up to the July 21, 2005, the RMB exchange rate had been adjusted once and for all, except for a very short period.

Here, the United States just entered the post-war period of "high growth and low inflation" boom, which also made China escape from the impact of a series of waves, and achieved more than 20 years of relatively stable economic growth, an average of 9.7% GDP growth.

The renminbi is valuable, and it earns less money than Wuhan Ya Ge Optoelectronics Technology Co., Ltd., which is mainly engaged in the development of laser and optoelectronic medical equipment. Its products are exported to more than 60 countries and regions such as Europe, the United States, Japan and Korea, and overseas sales account for more than 70% of its total revenue.

Yesterday, Zhang Jiarong, chairman of the board of directors, bluntly said: the remittance changed too much for them.

Zhang Jiarong said that in the early 90s of last century, they could exchange 10 yuan for every dollar they export, plus the national export tax rebate policy, and they could come back to 11 yuan or 12 yuan by the payment of foreign currency.

Up to 2005, there were more than 8 yuan.

"Now, I have to stare at the exchange rate every day and keep abreast of exchange rate changes. Yesterday it was 6 yuan and 7."

It has many long-term customers, and the contract is signed for 5 years.

Zhang Jiarong said that fortunately, the products produced by their enterprises have independent intellectual property rights and technology, and there is room for profit, while many domestic export enterprises such as molds, toys and daily necessities will have considerable pressure.

Coping with RMB quotations

Facing the pressure of foreign exchange reform, the strategies of agge are as follows: increase the intensity of new product development, enhance the profit space with technology and R & D capability; furthermore, conduct business negotiations with overseas customers, and complain with foreigners about the exchange rate risk sharing mechanism.

"Originally, we usually quote us dollars, and now we all use Renminbi quotations."

Zhang Jiarong told reporters that, as an export-oriented enterprise, the company has always used the usual practice to quote the US dollar in overseas markets. But after the financial turmoil in 2008, the dollar fluctuated, and they began to try to quote the renminbi and reduce the risk.

Reporter Xia Qiong intern Lei Yun correspondent Aman Chang, Hubei enterprises to do pnational business can be settled in RMB (reporter Wang Danni correspondent Zhao Yuan). In the future, our province's foreign trade enterprises can directly settle RMB in foreign trade, and do not need to worry about the losses caused by exchange rate changes.

Recently, people's Bank of China, Ministry of Finance and other departments jointly issued the "notice on the expansion of cross-border trade RMB settlement pilot issues", Hubei has been included in the pilot city.

According to the circular, the pilot business covers cross-border trade in goods, trade in services and other RMB settlement in current account. The overseas territories involved in cross border trade in RMB settlement are no longer restricted, and expanded from Hong Kong, Macao and ASEAN to all countries and regions. Enterprises can choose to use RMB settlement in accordance with market principles.

The provincial finance office said that before the province's enterprises did import and export trade, they could only choose foreign exchange pactions. Since the financial crisis, the exchange rate of RMB, such as the US dollar, euro and sterling has fluctuated greatly, which has a great impact on the enterprises.

Wuhan branch of the people's Bank of China said that if the cross-border trade of enterprises was settled in RMB, the cost of foreign exchange would be avoided by foreign trade enterprises and the business cost of enterprises would be reduced.