The Appreciation Of RMB Makes The Export Shoe Enterprises In A Dilemma.

October 13th, autumn Canton Fair In the near future, Mr. Wu, the head of Quanzhou auto parts trading company, was worried and worried about how to quote the foreign customers. "The newspaper is high, customers will be lost, and the prices will be low. The small profits of the enterprises will be eaten up by the appreciation of the renminbi again, and the enterprises will not be profitable."

The China Foreign Exchange Trading Center announced in October 11th that the central parity of the US dollar against the RMB was 6.6732. Entering the 6.67 pass in one fell swoop, a 98 basis point higher than that in October 8th (6.6830), and once again raised the new record since 2005.

commonly Trade Most passive

Recently, the Quanzhou Municipal Foreign Trade and Economic Cooperation Bureau issued a report on the impact and analysis of the new round of foreign exchange reform on our foreign trade and economic cooperation, pointing out that RMB appreciation has different effects on different trade patterns, and has relatively little impact on processing trade and has a great impact on general trade. It is understood that the general trade of our city accounts for about 85% of the total export volume, so the impact of foreign exchange settlement after export is more obvious. Taking the 6 and 7 months of this year as an example, the general trade export of our city was 1 billion 446 million US dollars, while the RMB exchange rate changed from 6.8275 to 6.7898, and the general trade export enterprises in the city reduced the income of 55 million yuan.

In addition, from the perspective of export commodities, the appreciation of RMB has great impact on our textile, clothing, shoes, bags, ceramic resin handicrafts and other low technology, low added value, labor-intensive and low cost advantages. Such export enterprises are generally in a low profit state and are sensitive to cost changes. If the exchange rate changes slightly, they will seriously squeeze profits or even lose money.

A research report shows that about 57% of the small and medium-sized export enterprises have a profit margin of less than 5%, and if the renminbi appreciates 3% to 5%, some enterprises will be in a small profit and loss. Since the central bank launched a new round of RMB exchange rate reform in June 19th this year, the yuan has appreciated by more than 1.7%.

Adjusting product mix is the key.

Domestic one Shoe enterprises A data was provided. For example, the average price of $15 women's shoes was from 2006 to 2008. The price of raw materials rose from $10.05 to $10.85, and the cost of labor rose from $2.23 to $3.3. Even if the export price rose to $16.2, the gross profit of these shoes dropped from $1.1 to $0.7. In addition, the RMB appreciation continued to decrease by 0.29 US dollars, the export tax rebate reduced by 0.3 US dollars, and the pre tax profit of a pair of shoes dropped from 1.2 US dollars in 2006 to 0.21 US dollars in 2008.

"After a year of hard work, I found that I had lost money." When Mr. Wu chatted with reporters, he poured water. "Low value-added processing products simply do not have the bottom line to raise prices." From the previous Canton Fair, the reporters also found that the successful implementation of the price increase is generally some innovative products that use new materials and technologies.

Under certain circumstances, the appreciation of RMB will compress the profits of export enterprises, and at the same time, it will also force enterprises to spanform. "In the long run, the exchange rate reform is an excellent opportunity for our city to adjust its product mix and upgrade its industrial level." The relevant officials of the Municipal Bureau of foreign trade and economic cooperation said that for export enterprises, the increase in cost will force enterprises to eliminate backward products and increase the export value of products with high added value. Enterprises will focus more on deep processing, brand marketing and R & D, and the pace of changing foreign trade growth mode will be faster. {page_break}

Make good use of settlement tools to avoid risks

"In fact, in response to the appreciation of the renminbi, enterprises can start from two aspects: first, increase the added value of products, enhance the bargaining power of enterprises, and at the same time be good at using all kinds of settlement tools." Professor Chen Jinlong, School of business administration, Huaqiao University, said.

"Enterprises that export export credit insurance can collect foreign currency loans into renminbi through policy financing loans, lock in the exchange rate ahead of time, and avoid the exchange rate risk of enterprises." Relevant officials of the Municipal Bureau of foreign trade and economic cooperation said. In addition, the promotion of cross-border trade RMB settlement is also a good way.

At present, our city has screened the first batch of the first batch of export commodities trade RMB settlement pilot recommended 977 enterprises. "After the approval of the list of pilot enterprises, enterprises can use RMB settlement in export trade." The relevant people said. The data show that RMB settlement can save 3% to 5% of the cost. "In order to persuade overseas customers to accept RMB settlement, enterprises can try to adjust export prices and share savings with trade partners to achieve a win-win situation."

"In addition, the use of forward exchange, currency swap, currency options and other foreign exchange derivatives financial instruments to prevent exchange rate risks, timely lock the forward exchange rate, also can avoid the risk of exchange rate fluctuations, so as to lock in the proceeds." Insiders said.