Foreign Trade Shoes And Clothing Enterprises Face The Risk Of Foreign Exchange Settlement

Recently, a central bank announcement attracted the attention of many foreign trade enterprises.

The announcement requires that the floating rate of RMB to us dollar exchange rate in interbank spot foreign exchange market expanded from 5 per thousand to 1% from April 16th, while the difference between us dollar maximum spot selling price and minimum spot purchase price doubled.

The RMB exchange rate with the US dollar has entered the "6.2 era", and the fluctuation of the RMB exchange rate has widened, which means that the risk of exchange rate settlement will be greater.

Foreign exchange settlement will be greater and pressure on enterprises.

On the 16 day, the easing of the floating rate of the RMB to us dollar paction led to the attention of Jin Shaoyang, manager of Yifeng ceramic company. "The continued appreciation of the RMB exchange rate has brought enormous pressure to our export oriented enterprises, which is affected by the downturn of the international market under the impact of the financial crisis, and the settlement of foreign exchange settlement pactions and the quotation period can not be shorter than 3 months.

This time we relaxed the floating range of bank settlement.

As for the impact of exchange rate risk, Guo Xingmei, general manager of Baihua shoe industry, the 50 largest export enterprise in China, has a personal feeling. "We usually quote on a yearly basis, at least half a year, but in 2011, the appreciation of the RMB against the US dollar is very fast. Taking an order of US $1 million, for example, when the US dollar is RMB 1:6.4, when the US dollar has reached 1:6.3, the exchange rate loss will reach 100 thousand yuan."

Guo Xingmei said that in the 2011 year, the risk of exchange rate would lose about 4000000 yuan in net profit of the company. She will also pay close attention to the policy of easing the fluctuation of bank settlement.

Enterprises do everything possible to avoid risk banks' foreign exchange value preservation business favored.

The soaring exchange rate has greatly affected the production of export enterprises. Guo Xingmei admitted that since the second half of last year, the production of low end products of safety shoes has almost stopped or eliminated.

"Now, the European Union and other countries impose a 8% tariff on the safety shoes imported from the mainland of China, and the similar products imported from Vietnam and Burma are exempt from customs duties, which gives our manufacturers a deep inferior position.

This forces us to upgrade the low-end products, or else we can't survive.

Product upgrading and internal energy saving can also help companies offset exchange rate risks.

This is also very much the same feeling, as well as the management of Xingang wood industry. Liu manager, who is responsible for export business, said, "the floating rate of the exchange rate has increased, the biggest impact on the product quotation, which is not conducive to the stability of the order, but also compresses the profit margins of the enterprises. The biggest impact is the small and medium enterprises with lower product levels, so the brand enterprises can only develop by upgrading their research and development."

At the same time, many foreign trade enterprises are also looking for them.