Three Measures To Solve RMB Appreciation

　　 RMB It has become a trend of continuous appreciation. US dollar exchange rate Four consecutive days to break through the important juncture. Seeing that RMB is becoming more and more valuable internationally, export enterprises are "unable to sit". In an interview with reporters, it was found that Hebei's export enterprises were trying to cope with the appreciation of the renminbi, reducing the negative impact of appreciation on the export of enterprises. "One month comes out of a new product, accelerates overseas mergers and acquisitions, and invites exchange rate traders." This sudden RMB Appreciation tide It is forcing Hebei enterprises to make moves.

Exchange rate affected export volume shrank or exceeded 600 million in March.

Since China's resumption of exchange rate reform in June 20th, the RMB exchange rate has entered a rapid appreciation road. From June 21st to September 21st, the appreciation rate of RMB against the US dollar was about 1.87%. From 1:6.7907 in September 8th to 1:6.6997 on the 21 day, only 9 trading days, the speed is very fast. Last Friday, the central parity of RMB against the US dollar was quoted at 6.6415 yuan, which has exceeded 2% in June 21st.

The relevant data show that from 1 to August, Hebei's general trade import and export amounted to US $22 billion 60 million, of which exports were US $11 billion 560 million, and imports were US $10 billion 500 million, representing an increase of 43%, 53% and 33% respectively. The average monthly export volume of Hebei in August was US $1 billion 445 million. Based on this average, the export volume of Hebei in the past three months was about 4 billion 500 million US dollars. The total value of the export volume of Hebei in the past three months was more than 600 million yuan in the past three months, with the appreciation of RMB 2%.

Foreign trade small enterprises are affected.

"The impact is inevitable. As a large exporter of automobiles, we have been very concerned about the exchange rate changes." "The price of the products is high, and the competitiveness of the products will drop, and the sales volume will also have a foreign exchange loss," said the Great Wall automobile spokesman Yu Gui.

Like the Great Wall automobile, Shijiazhuang Bo Shen tools Group Co., Ltd. is also a large exporter of Shijiazhuang. "When we export our products now, we should try to negotiate with our clients in terms of multi currency settlement, and use some currencies that have little fluctuation in exchange rate to minimize the negative impact of RMB appreciation." Mr. Shen Ming, a representative of securities business affairs, said.

For small businesses, however, the impact of the yuan on the appreciation of the dollar is even greater.

"Our monthly export volume is about 1000000 dollars, the exchange rate in June 30th is 6.7856, and October 15th is 6.6497 yuan. Don't look at a dollar commodity converted into RMB is only 0.14 yuan, but three months about 3000000 dollars on the invisible little collection of about 400000 yuan, profit loss of nearly 30%. Li Cheng, director of a foreign trade enterprise in Shijiazhuang, the main garment export company, said that the appreciation of RMB is constantly eroding the profits of garment enterprises.

Traditional exports are vulnerable.

Hebei provincial commerce department responsible person said that the appreciation of the renminbi, will inevitably bring pressure to most export enterprises, squeezing the export profits of enterprises, so that the export profits of enterprises gradually reduced. Especially for some long-term export orders with low value-added products, enterprises can only be in a passive position because of the appreciation of the renminbi.

However, the official said that a simple appreciation of the exchange rate would have little impact on the mechanical and electrical products which were mainly processed by trade, and may have less impact on the resources such as the five metals and chemical industries and those with rigid supply and demand. The larger impact on exchange rate appreciation should be traditional exports such as textiles, clothing and shoes. Reporters learned from the website of the Hebei provincial chamber of commerce that there are surveys that show that the tolerance level of China's export enterprises to RMB appreciation is generally below 2%, of which 44.5% of the textile industry, such as textiles, clothing, light industry shoes and hats, account for 44.5% of tolerance.

Taking measures to cope with the appreciation of Hebei Enterprises

Faced with the appreciation of the renminbi, Hebei enterprises have come up with various tricks to deal with it.

A trick

Introduce new products and enhance competitiveness

"In recent months, we have launched a lot of new products in the international market, and almost every month there will be a new product listing, which is an important move for us." The Great Wall car spokesman Shang Yugui said, for them, exchange rate loss is not the biggest threat, the most important thing is the weakening of product price competitiveness. To this end, the Great Wall automobile has increased its investment and research efforts, continuously improved its product performance and style, and maintained its product competitiveness at the same time of rising prices.

{page_break}

Tricks two

Accelerating overseas mergers and acquisitions

"In addition to multi currency settlement, we have also increased our communication with our clients, hoping that both sides can share the impact of the exchange rate fluctuations." Mr. Shen Ming, a representative of securities business affairs, said.

"In fact, these are only temporary measures. If we want to fundamentally solve this problem, and the problem of anti-dumping, it is overseas mergers and acquisitions, and the establishment of production enterprises overseas." Jing Cheng Ming told reporters that the acquisition of CYCLONE is a $20 million 400 thousand acquisition of a similar company in Canada. After the completion of the equity purchase, CYCLONE will become another wholly-owned subsidiary of BW in North America after the US limited liability company.

Tricks three

Exchange rate manipulator

Large companies can increase investment and research efforts to launch new products frequently overseas, and they can also spend money on overseas similar companies, but for a large number of small businesses, these two measures are obviously unrealistic.

Faced with the appreciation of the renminbi, "it is better to change exports to domestic sales now, and the domestic market potential is also great." Shijiazhuang Development Zone, a clothing company responsible person said. Other companies have other plans. "In order to cope with the appreciation of the renminbi, the next step is to set up the foreign exchange market department and employ experienced traders to avoid this risk as far as possible." Li Cheng said.

Departments say provincial commerce department: various measures can reduce pressure.

For exporters to resolve the pressure brought by the appreciation of the renminbi, the relevant officials of the Hebei provincial chamber of Commerce said that the export enterprises could resolve them through business measures. For example, for some long-term export orders, the operation of dismantling orders can be carried out, and large single products will be converted into small orders, delivery in batches and collection of foreign exchange, shortening the settlement period and striving to reduce the losses caused by exchange rate changes.

In addition, export enterprises can also use financial instruments to reduce pressure, such as using spot settlement, reducing the risk of exchange rate uncertainty and reducing exchange losses, so as to avoid the impact of RMB appreciation.

Another industry pointed out that the most important thing is that enterprises need to change the way of growth and innovate. In order to reduce the impact of RMB appreciation on export enterprises, enterprises should actively adjust the product mix, enhance the added value of products, and achieve industrial transformation and upgrading. Vigorously develop independent brand products, improve profit margins.

Related news

Canton Fair exhibitors look forward to stable exchange rate

According to the Nanfang Daily, the central parity of RMB against the US dollar has risen by 6.65, making the issue of RMB exchange rate the focus of attention of this Canton Fair. Many exhibitors admitted that the rise of the RMB exchange rate did bring greater pressure to enterprises. Many companies admit that although they have prepared a plan to deal with exchange rate risks, maintaining the stability of the RMB exchange rate is still their biggest aspiration.

"The order period of many large customers is up to a year, but if there is no definite expectation in the link of RMB exchange rate, we will be like a headless fly and unable to negotiate with customers when the price is quoted." Xiao Youyuan, general manager of GREE electric overseas sales company, said, "whether it is 6.7 or 6.5, we can still accept it. As long as the exchange rate remains stable. "

Us postponed its exchange rate report and temporarily avoided "currency war"

According to the Beijing News, the US Treasury Secretary Geithner said in a statement on 15 July that the risk of "currency war" between China and the United States was postponed because of the postponing of the international trade and exchange rate policy, which was originally announced in October 15th.

The statement said that in the coming weeks, the United States will hold a series of very high-end meetings with the parties concerned. These meetings will play an important role in implementing relevant policies and promoting a more robust, sustainable and balanced world economy. Therefore, the Ministry of finance will postpone the publication of the exchange rate report for the second half of the year.

Geithner said that since China announced the reopening of the RMB exchange rate reform mechanism in June 19th this year, the RMB exchange rate has appreciated 3% against the US dollar so far. Since September 2nd, the appreciation rate of RMB has accelerated, more than 1% per month.

Yao Jian, spokesman of the Ministry of Commerce of China, said on the 15 th that the US side decided that the RMB was undervalued on the basis of the favorable balance between China and the United States, and that it was unreasonable and wrong to take discriminatory trade protection measures against Chinese products and seriously violate the WTO rules. He said that the Renminbi should not become a "scapegoat" and "lightning rod" for the domestic problems of the United States.