Domestic Shoe Enterprises First Taste Cross Border RMB Settlement "Sweetness"

Cross-border Trade The implementation of RMB settlement, let domestic Shoe enterprises The amount on the order is changed from "imaginary number" to "real number", and the benefits of "saving money" also attract more and more enterprises to participate.

　 This is evident from the tension of RMB settlement.

Priority for RMB settlement Order

Located in Wenling, Zhejiang, Hengfeng is mainly made up of traditional shoemaking, with more than 2000 enterprises. With the acceleration of RMB appreciation, the profit margins of shoe companies have been seriously squeezed. Many enterprises have reflected that some export contracts are in fashion and profitable, and when they settle foreign exchange, they may disappear because of the appreciation of the renminbi. Hengfeng has its own export rights business, which also dropped to more than 30 from seven or eight more than 30 years ago.

　 Cross border trade settlement of RMB has eliminated the cost of enterprises.

Zhejiang Taizhou Tai Jiang Shoes Co., Ltd. is the first 19 foreign trade enterprises to apply for cross-border trade RMB settlement pilot enterprises, more than half a year, chairman Wang Jianglin felt quite a lot.

Wang Jianglin made a calculation: the contract price of shoes signed between foreign businessmen and foreign businessmen was 4 US dollars / double. According to the exchange rate of RMB 6.599 against US dollar in January 13th this year, the cost of a pair of shoes to the enterprise account was 26.396 yuan RMB, and delivered at the end of April. According to the 6.499 to 1 exchange rate at that time, the actual amount of the money was only 25.996 yuan, and the difference of the price of a pair of shoes reached 0.4 yuan. The larger the quantity, the greater the difference. But when RMB is settled, there will be no such problem. "Now when I see a new client, I first ask him if he is willing to settle in RMB. If the other party is willing, he will take the order first." Wang Jianglin said.

An industry analyst believes that there are at least four advantages in using RMB to carry out cross-border trade settlement. First, it helps to avoid exchange rate risk; two, because of the use of single currency, the operation cost is clearer and easier to calculate the cost and revenue; three, the two exchange rate and the double exchange rate of import and export are reduced; four, it speeds up the settlement speed and improves efficiency.

　　 Using policy to explore new paths

"Two or three years ago, when the financial crisis happened, a pair of shoes could lose one or two yuan. Now that the US dollar is depreciating and the RMB is strong, the production orders signed with foreigners are affected by the exchange rate, and there is not much profit left. A shoe manufacturer in Dongguan, Guangdong, said the person in charge.

After cross border trade settlement in several provinces, pilot shoe companies are careful to "test the water". When they see more and more enterprises have tasted the "money saving" sweetness, the shoe companies that are not optimistic about this new deal have submitted applications for cross border trade RMB settlement procedures. Some enterprises even can't wait to apply for approval.

　 Wenling xinwanli shoes industry Co., Ltd. is one of them.

Lin Yungen, general manager of the company, told reporters that it is more complicated for enterprises to apply for cross border trade RMB settlement procedures. Fortunately, they simply export through foreign trade companies with cross border trade RMB settlement rights, so that enterprises can settle accounts with foreign trade companies in Renminbi. Although profits earned do not earn much more directly with foreigners, they reduce trade disputes to a large extent and are relatively stable when settling loans.

In contrast to Xin Wanli's RMB settlement through foreign trade companies, Taizhou Shilin shoes company set up sales outlets in Ukraine, and settled in Renminbi directly, thus reducing the intermediate link of the audit.

"If an enterprise directly sets up or is highly competitive in foreign products, it is more suitable for RMB settlement, so that no matter how the exchange rate of other currencies fluctuates, it will not affect the actual income of Chinese enterprises." Guangdong Provincial Department of foreign trade and economic cooperation said.

More and more enterprises have tasted the sweetness of RMB settlement in cross-border trade.

Statistics from the Hangzhou central sub branch of the people's Bank of China show that in the past year, the number of participating enterprises has increased from the initial more than 90 to the end of 6 this year, and the settlement volume has also soared. The total settlement amount in the first half of this year has reached 100 billion 600 million yuan, which is more than 8 times the amount of settlement in the half year of 2010. According to the current minimum bank exchange cost of 0.2%, cross border trade settlement in the first half of this year has at least saved 133 million yuan for enterprises.

　　 Pilot enterprises expect policies to benefit

The pilot of RMB settlement in cross border trade fully reflects the practical demand for cross-border use of RMB. Because foreign currency is no longer used, it will not only greatly reduce exchange rate risk, but also enhance domestic shoe enterprises' ability to resist risks and international competitiveness.

"Cross border trade RMB settlement is a great advantage for export oriented enterprises." Wu Deguo, general manager of Sichuan's Yi pan LAN shoes industry, said that he is very eager to pilot the area to Chengdu as soon as possible.

Wu Deguo said that at present, international trade is usually settled in US dollars or euros. Foreign customers often have a three or four month period from order to settlement, which is very unfavorable for export enterprises in recent years. "We had a list last year, and the goods were sent out for nearly half a year before payment was received. In the past few months, the renminbi has appreciated six or seven cents against the US dollar, which has cost US $fifty thousand or sixty thousand."

Although RMB settlement in cross-border trade is increasingly sought after by enterprises, there are still a series of problems to be resolved. For example, the overseas purchasers, especially the developed countries in Europe and the United States, do not have a high degree of acceptance of RMB; the scale of overseas RMB is still small, the liquidity is not enough; the degree of internationalization of overseas Chinese banks is not high, and the impetus for RMB settlement is not enough.

Many shoemaking executives admit that foreign trade settlement in China is not enough. Not only are shoe companies doing accounts, but foreigners are also doing accounts because the appreciation of the renminbi is a general trend, so foreign investors are reluctant to take the risk of exchange rate transfer from Chinese enterprises. However, most shoe companies are still optimistic about the prospect of RMB settlement in cross-border trade.