Euro Depreciation Affects Wenzhou'S Export Of Shoes And Clothing Enterprises To Europe

Ever since the outbreak of the Greek debt crisis, traders have been seen as a strong euro by entering the path of devaluation, and this has become the beginning of many nightmare habits of Euro settlement.

As Wenzhou's largest export destination, export orders for Wenzhou enterprises to the EU have begun to decrease in the past two months, and Wenzhou's export growth to the EU has been lower than that of Wenzhou's overall export growth.

The impact of the financial crisis has gradually subsided, many enterprises export orders have also come back a lot, but the footwear export business Lee is still unhappy.

2 months ago, his company exported a batch of textiles to Europe, but suddenly found that the contract was quoted in the euro, and the euro fell very badly in the near future, quietly "evaporating" the profit of nearly 100 thousand yuan, and the expected order was eventually reduced to a guarantee.

"Now we have a deep understanding of the true meaning of exchange rate risk."

Li jokes that before, he often heard about exchange rate risk, but he did not care about it. Most people were always concerned about the appreciation of the renminbi.

So this business has suffered a great deal.

As one of China's main export markets, the EU's trade status should not be underestimated.

EU has always been ranked first in Wenzhou's export market.

According to statistics, the total value of Wenzhou's exports to the EU from 1 to June this year was $1 billion 712 million, an increase of 24% over the same period last year, and exports to the EU accounted for 27.5% of Wenzhou's total exports.

When the financial crisis broke out, the strength of the euro has won the favor of many international traders, and has also made some export enterprises in Wenzhou accustomed to the euro settlement.

However, the euro, which has always been valued by Wenzhou enterprises, has entered the path of depreciation when Greece's debt problem is exposed.

The euro's exchange rate continued to decline against the yuan, and its value fell nearly 15% in the past six months.

The worst performance in all non US currencies.

Some major export enterprises in Wenzhou indicated that because some enterprises used the US dollar settlement, the direct depreciation of the euro continued to depreciate on their import and export trade was not great, but the export orders for the EU in 5 and June began to decrease this year.

According to the customs and Excise Department of Wenzhou customs, from the first half of the year's export data, Wenzhou's exports to the EU grew by 5.3 percentage points lower than that of Wenzhou's overall export growth.

According to the insiders, Wenzhou's exports to the EU are mainly low value-added traditional products, such as shoes, clothing, glasses and so on. European enterprises that need to import goods from China may lower prices or even reduce orders.

Export companies generally expressed concern that, if the euro continued to fluctuate, exports to Europe would just shrink.