Cross Border RMB Settlement &Nbsp; Shaoxing County Enterprises To Enjoy More Applications

Recently,

According to the latest data from China foreign exchange trading center, the central parity of RMB against the US dollar was 6.3849 in August 30th, and the second consecutive trading day has hit a new high since the reform.

"The exchange rate has gone up again."

Mr. Chen, a financial manager of a large home textile export enterprise, sighed at the exchange rate shown on the computer.

For enterprises that export more than 20 million US dollars annually, the frequent fluctuation of exchange rate brings risks.

"Due to frequent fluctuations in the exchange rate, our company has lost about 1000000 yuan, all of which are losses.

"If RMB can be settled, there will be no such loss."

Not long ago, around the guidance of his colleagues, Mr. Chen's company applied for the second batch of pilot enterprises for RMB settlement and export of cross-border trade.

It is understood that in the second batch of application of the pilot enterprises, 212 companies in my county are actively applying, through the first trial of 160, plus the first batch of 218, has reached 378.

RMB settlement accounts for more than 90% of imports.

Mr. Lu is the head of the foreign trade department of a textile printing and dyeing enterprise in Binhai Industrial Area of our county. In many international businesses, he has fought with Russian clients for a RMB settlement business.

"It's hard to convince old Russian customers to have a try."

Mr. Lu said that the international market has been settled in US dollars, and this success is purely accidental. The main reason is that the customer is an importing and exporting trader and has an import and export relationship with China.

According to the statistics of the Shaoxing central sub branch of the people's Bank of China, in 1-7 months, the settlement amount of Shaoxing county's cross border real estate payment for goods trade amounted to 581 million yuan, of which 42 million yuan was actually paid, and 539 million yuan was actually paid.

"In the realization of RMB settlement, Shaoxing's export business accounts for only 7.2%, and more than 90% are imported."

In the month of 1-7, the county's foreign trade amounted to US $5 billion 500 million, accounting for 35 billion 200 million yuan of the total export value at the exchange rate 1:6.4 ratio. The export business of RMB settlement accounted for only 1% of the total export business of the county.

Textile enterprises lack the right to speak.

Reporters also learned in the interview that most enterprises still have cross-border RMB settlement.

Although cross-border RMB settlement has started to thrive, it is difficult for our county textile export enterprises to promote it.

Insiders pointed out that overseas buyers, especially developed countries in Europe and the United States, the acceptance of RMB is not high.

Not only are we settling accounts, but foreign businessmen are also checking accounts, because the appreciation of the renminbi is a general direction, so foreign investors are unwilling to take the risk of exchange rate pfer from Chinese enterprises.

According to Wang Jianzhong analysis, at present, more than 90% of domestic foreign trade settlement is settled in US dollars.

At present, under the premise that RMB is not the prevailing international currency, it is difficult for small and medium-sized enterprises to promote RMB settlement.

From another point of view, the lack of pricing power and the right to speak are also the key reasons.