How Many Mountains Do We Need To Cross Over?

After half a year, the Sino Russian currency settlement has changed from the original political significance to more economic benefits.

However, after stepping into the threshold of "self accounting and self calculation", most of the Russian textile and clothing industry was in the process.

In November 23, 2010, the governments of China and Russia announced that bilateral trade could be settled in their own currencies.

This decision not only helps promote the internationalization of RMB, but also creates favorable conditions for trade between the two countries.

At one time, the direct settlement of RMB and rouble to avoid the risk of the depreciation of the dollar has become a good vision for some export companies.

Over half a year, the Sino Russian currency settlement has changed from the original political significance to more economic benefits.

However, after stepping into the threshold of "self accounting and self calculation", most of the orders for Russian textile and clothing did not get rid of the dependence on the US dollar.

Traders have different attitudes towards the direct settlement of RMB and rouble. The multiple factors lead to the limitation of currency circulation, and perhaps foresee the distance between China and Russia in realizing the settlement of domestic currency.

The huge exchange rate of the ruble dollar dollar currency chain has been the biggest entanglement in China's "grandfather".

In the 90s of last century, traders from China and Russia went through the storm and sold the entire carriage.

20 years later, the push of local currency settlement has brought benefits and convenience to Chinese and Russian traders. The RMB trading policy in Russia and the ruble's listing in China have been implemented successively, so that businessmen who go to Russia are no longer entangled in business.

"The business without dollars has become more pure and can avoid many unnecessary troubles."

Most of the traders in Russia are happy to see the advance of the local currency settlement. For them, not only the exchange cost is relatively reduced, but this settlement method also provides favorable protection for the regularization of the local currency exchange channels.

According to statistics, in the first trading day, a total of 9 banks in Russia conducted 29 RMB pactions, with a total turnover of nearly 5 million yuan.

Compared with the praises of the traders in Russia, the attitude of some businesses of the company is a little calm.

They are still worried about using rubles to settle accounts. "Ruble is not a special currency of credit, nor is it very clear about its exchange rate changes.

Moreover, the value of the rouble is too large and there are many inconveniences in the paction.

The business of a woolen sweater in Guo Ya mansion has made an embarrassing situation for ruble. "Our current pactions are mainly settled in US dollars and euros, and some foreign merchants have directly reused good Renminbi and seldom use rubles."

Analysts pointed out that from the current market situation, the ruble still needs to face the problem of low international credibility.

In the case of continued devaluation of the US dollar, the annual rouble exchange rate is not a stable currency. This causes Chinese businessmen to worry about ruble and become one of the obstacles to the strategy of the two countries.

Dollar strength still exists

In the process of pushing the currency settlement between China and Russia, the strong position of the US dollar in bilateral trade is also an important factor that can not be ignored.

An indisputable fact is that most of the orders are still trading through the US dollar.

In this regard, Mr. Kong has made such an explanation: "the merchants in the market are basically" passive "sales, that is, waiting for customers to come to trade.

Therefore, foreign businessmen occupy the absolute dominant position in the settlement currency. They choose the US dollar, so we can only take the whole amount.

Since the beginning of this year, the rapid depreciation of the US dollar has made many businesses miserable. Often the price that has just been discussed today will lose tens of thousands of dollars due to the depreciation of the US dollar in the second day.

Because of the losses caused by exchange rate problems and the small share that can be shared with foreign businessmen, the rest must be digested by businesses themselves.

Foreign businessmen have a liking for the US dollar and a sharp fluctuation of the US dollar exchange rate, which makes businessmen start looking for corresponding evasion methods.

According to Wang Yunfeng, sales representative of Beijing Zhuhai Shengshi group, the company's business is mainly based on US dollar settlement.

However, the adoption of RMB quotations and US dollar settlement methods effectively help enterprises reduce exchange rate risks.

"The RMB exchange rate is relatively stable, and we can still guarantee that the price of products will not be affected by the fluctuation of US dollar exchange rate when the products of other businesses are passive revaluation."

On the choice of settlement currency, the indirect impact of the US dollar on the RMB and ruble also expressed concern: "I know that direct exchange is a good thing, but now the exchange price between the RMB and the ruble is still priced in the US dollar. Although it seems that it has nothing to do with the US dollar, if the dollar depreciates against the renminbi, the price is not going to change yet." this worry is not unreasonable. It seems that the settlement of local currency in its own business is actually bound by the US dollar exchange rate and even the economic situation, which means that the exchange loss caused by the depreciation of the dollar has not disappeared, but the exchange loss between the local currency and the US dollar will be expressed in the form of non US dollar assets. The strength of the US dollar is reflected not only by foreign businessmen.

It is worth mentioning that some Russians now regard renminbi settlement as a "smart" approach.

"In doing business with renminbi, Russians usually get more bargaining power from it.

From this perspective, RMB settlement is the first step. "

A businessman said with deep feeling.

Comprehensive implementation encountered three obstacles to {page_break}

In addition to the practical bottlenecks exposed in the market, China and Russia need to leap over many thresholds in order to really throw the dollar aside.

For this reason, the reporter interviewed Liu Huaqin, deputy director of the European Research Department of the international trade and Economic Cooperation Research Institute of the Ministry of Commerce. She believed that the challenges faced by the direct settlement of the RMB and rouble should start from three aspects.

First of all, the RMB can not be freely convertible, so that China must provide an effective reflux channel for its trading partners to effectively manage their holdings of RMB assets. Secondly, there are only a few Chinese banks in Russia, and the lack of exchange space limits the settlement of local currency. Finally, because of the different types of commodities in Sino Russian bilateral trade, the fluctuation of bulk product prices will have an impact on the exchange rate of the two countries.

China imports Russian crude oil and natural gas and exports textile and clothing products.

The price of crude oil and natural gas is higher than that of Europe.

Liu Huaqin believes that the so-called two kinds of monetary settlement, the so-called bias of interest is not the research report can be explained, only the actual trade after a period of time to see it.

"It is undeniable that aside from US dollar settlement, there are many advantages to Sino Russian trade.

Through the establishment of a new currency circulation system, we can reduce dependence on the US dollar and realize the diversification of foreign currency.

Textile companies are concerned about reducing the cost and time of exchange.

For the future of Sino Russian currency settlement, Liu Huaqin also pointed out that the implementation of this strategy is closely related to the degree of internationalization of the RMB itself.

"Only when RMB is internationalized, can China and Russia settle their currency freely."

Concluding remarks: a series of reports on "China and Russia's textile and clothing trade" from the whole perspective are coming to an end.

Reviewing the three reports, the trade of textiles and clothing between the two countries is interpreted from the perspective of trade channels, market changes and settlement methods.

Against the backdrop of a favorable global economic situation, our export enterprises to Russia not only need to upgrade the quality of their products, but also change their business philosophy in a timely manner.

We must seize the two or three line market by developing our own brand to grasp the new development opportunities of the Russian market.