RMB To Us Dollar Breaking 6.6 Textile Manufacturing Profit Squeezed Again

Core tip: along with exchange rate In recent years, it has reached a new high level. enterprise No longer calm. Exchange rate fluctuations have seriously affected the export of enterprises, and profits have been squeezed by 2%.

On the 13 day, the data released by China foreign exchange trading center showed that the central parity price of the RMB once again set a record high, and 1 yuan to RMB 6.5997 yuan, which once again hit a new high since the reform.

However, since the beginning of this week, the US dollar has continued to fall down and the central parity of the RMB against the US dollar has risen sharply, and it has even reached a record high.

China foreign exchange trading center data show that in January 11th, 1 US dollars to 6.6216 yuan; in January 12th, 1 yuan to 6.6128 yuan; in January 13th, 1 U. S. dollars to 6.5997 yuan, three degrees hit. Foreign exchange reform The new high.

As the exchange rate has reached a new high in recent years, export oriented manufacturing enterprises are no longer calm.

Panic in new heights

After Christmas, Yan Mei, a salesman of a trading company in Shanghai, negotiated 8 rounds with his client and finalized the deal at a profit of 30%. But the boss denied the huge order of $5 million.

But the boss is another dilemma. "The price of raw materials is soaring, and the exchange rate is rising day by day, even if it is 5 percentage points higher than before, the more we get, the more we lose."

The recent exchange rate has even been a new trend since the new exchange rate reform. Like the whip, it constantly lashed the sensitive profit line of export enterprises. The eyes of the bosses were staring at them with pain.

The rise in the exchange rate began to take hold at the end of last year.

The first two new highs were reported in December 31st last year, the exchange rate of RMB against the US dollar was 6.6227 yuan, and the exchange rate of RMB against the US dollar was 6.6239 yuan in November 11th.

As the dollar depreciates, all dollar priced commodities in the international market are rising.

"Our manufacturing enterprises need raw materials, and the RMB exchange rate has risen to two levels." Indeed, the fluctuation of exchange rate has seriously affected the export of enterprises, and profits have been squeezed over 2%. Mr. Li's enterprise is a low voltage electrical appliance. Because of the patent issue involving the country or region of the order, various expenses have already squeezed profits relatively slightly.

"If we don't do anything else, the overseas order business is already in a state of deficit." Mr. Li's group is a manufacturing company in the Yangtze River Delta. The total annual orders from European and American countries are at least $100 million. From the next order to delivery, the time limit is basically three months. In order to avoid exchange rate risk, Mr. Li's group has tried foreign exchange futures hedging operation, but after all, it is a manufacturing industry.

In recent years, all raw materials priced in renminbi have also soared.

In the past 3 months, Brent crude oil prices have risen by 5.5%, copper prices have risen 14.4%, gold has risen 11.75%, corn has risen 44.76%, sugar has risen 21.5%, soybeans have increased by 15.4%, and some of Mr. Li's raw materials depend on imported products. The RMB exchange rate has risen. If it is a simple sales enterprise, it will make money, but as a raw material for manufacturing products, it is actually two losses.

"If the exchange rate is relatively stable, the total volume of orders is better than last year, increasing." The head of a well-known plasticized toy company also believes that the two ends have already left them on the brink of suffocation.

Indeed, the fluctuation of exchange rate has seriously affected the export of enterprises, and profits have been squeezed by about 2%.

Enlarged exchange rate security zone

"The rise of the renminbi is not a matter of two days a day, and businesses are basically used to it." However, in the face of the rising trend of exchange rate, in the traditional manufacturing industry, "lighter king" has been engaged in processing trade for nearly 20 years, but now it is no longer calm.

Huang Fajing is chairman of the Wenzhou lighters, a leading enterprise in China's lighter industry. More than 90% of its products are exported to Europe, America and Japan. Huang Fajing said that China's manufacturing advantage is slowly losing, and its previous profits fluctuate from 3% to 5%, and now it is squeezed further. These export-oriented manufacturing enterprises have explored a way of circumvention before making the "safe lock" interval of the exchange rate need to be further enlarged.

For example, Huang FA Jing has negotiated a stable interest rate floating range with the order customers. For example, the fluctuation of the exchange rate is within the 1% range, and the rise and fall are conceited by the supply and demand sides. Once the floating rate exceeds 1%, both sides of the risk bear 50%.

But now the 1% interval must be enlarged to 3% or even 10% to protect the profit margins of manufacturers. And the enlargement of this interval naturally involves the intensive negotiation of price.

"After the exchange rate rises, the present situation is that not only the risk is strengthened, but the order negotiation process begins to be cumbersome, and an order often needs more than a dozen bargaining." Qiu Xuefan, vice president of Wenzhou chamber of Commerce in Shanghai, agrees with Huang Fajing's magnification method. As a result, he no longer takes orders to maintain high-quality customers.

In fact, banks have also designed various hedging products for processing trade enterprises on the opening of the exchange rate.

Recently, a salesperson of Shenzhen Development said they developed a long-term foreign exchange product, and the bank can sign a forward sale and purchase contract with their customers, which has the function of avoiding exchange rate risk.

Specifically, this product design is the agreement between the bank and the customer, and the currency, amount, exchange rate and time limit for the settlement and sale of foreign currency in the future. When the foreign exchange income or expenditure of the expired client occurs, it is necessary for the two parties to fulfill the same purpose in accordance with the conditions specified in the forward contract for sale and purchase.