Exchange Rate Risks Increase &Nbsp; Foreign Trade Enterprises Should "Find Another Way" In Time.

Central bank recently announced that from April 16th, the RMB against the U.S. dollar.

On the 17 day, when answering a reporter's question at the press conference, Shen Danyang, a spokesman for the Ministry of Commerce, said that expanding the floating rate of the RMB against the US dollar would help to break the expectation of unilateral appreciation of the RMB, combat abnormal foreign exchange capital flows, and create a more stable business environment for the development of foreign trade.

However, we should also see that this adjustment will bring certain influence to foreign trade enterprises.

Many families

Enterprise exchange rate risk intensifies

"Now it may be more difficult for enterprises to reflect the trend of the renminbi, which may bring some challenges to the import and export enterprises accustomed to operating in a stable exchange rate or unilateral market environment."

Shen Danyang said.

Zhao Xijun, vice president of the school of Finance and finance, Renmin University of China, said: "the relaxation of exchange rate fluctuation is bidirectional. People's continued appreciation may increase the pressure of enterprises, and devaluation is conducive to the export of enterprises.

Foreign trade enterprises will face more volatile exchange rate environment, and foreign exchange risk management capabilities of enterprises will undergo further tests.

"Our annual export volume is tens of millions of dollars, of which 90% is settled in US dollars.

The expansion of exchange rate volatility will definitely increase our exchange rate risk. "

Mr. Wang, a salesperson of Shandong Huasheng agricultural chemicals Limited by Share Ltd, told our reporter that before expanding the volatility, their company did not take other foreign exchange risk avoidance, mainly to shorten the settlement time with the other party, for example, from 3 months to 2 months.

The company mainly exports agricultural machinery such as lawn mower, mobile sprayer and brush cutter to Western Europe and the United States.

"Increasing the volatility of the exchange rate will certainly increase our risk, and it is not yet clear how big the impact will be."

Ms. Li, director of Ningbo niche Electronics Co. Ltd.

Mr. Liao, head of overseas marketing department of Guangdong Chigo Air Conditioning Co., is attending the Canton Fair in Guangzhou.

He said that the impact of exchange rate fluctuations on enterprises is mainly the long-term impact, such as the trend of 1 to 3 months, the impact of short-term fluctuations is not very obvious.

Peng Peng, vice president of the Guangdong Provincial System Reform Research Association, said that the floating rate of single day expansion to 1% was a great relaxation, and the business risk of foreign trade enterprises would be increased.

"When signing a bill, the business needs to consider whether it is short or small, or long list."

Wait-and-see sentiment or aggravated order decline

Because of the debt crisis in Europe and the United States in recent years, China's enterprises have become increasingly vulnerable.

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The Canton Fair has just begun for four days, and the impact of the widened exchange rate on foreign trade enterprises is still in the process of digestion.

But Shen Danyang said at the press conference that the first two days of the Canton Fair had been opened, and some enterprises were worried that they would not dare to make a long order when they placed the order, only to make some short lists, mainly because they were worried that the fluctuation of exchange rate would not be well handled.

Liao Chao, head of the overseas marketing department of Guangdong Chigo Air conditioning company, said that the change of orders is not obvious at present. However, due to the increasing difficulty in forecasting the short-term trend of exchange rate, the concerns of the Canton Fair have increased.

"The reduction of orders on the Canton Fair is not entirely a problem caused by the widening of the exchange rate, but the change in exchange rate will change the expectation of RMB appreciation. Some enterprises will take a cautious attitude towards the paction, which will have a certain dropout effect on the volume and turnover of the Canton Fair."

Peng Peng said.

Find another way to avoid risks

"Enterprises must improve their exchange rate risk management capabilities.

If an enterprise fails to establish a foreign exchange risk management capability corresponding to the international market, then the fluctuation of exchange rate will expand and its risk will increase.

Zhao Xijun thinks.

Mr. Wang, the Shandong Huasheng agricultural and pharmaceutical equipment company, said that because the export of the company is much larger than that of the domestic market, the overseas market is widely distributed, and the demand is also stagger. The impact on the order is not too great, but measures should be taken to reduce the risk.

"In the future, we will choose RMB as settlement, so long as customers are willing to accept it, it will be good for us.

Of course, we need to negotiate with each other, and we need a process. It is impossible to settle all of them in Renminbi at once.

"For the risk of exchange rate fluctuations, we will have some consideration and increase in the price quoted by our customers," said Mr. Le, head of a plastic products foreign trade enterprise in Shanghai.

In addition, we will try our best to do recent pactions, not long-term. "

Mr. Liao, a Guangdong Chigo Air Conditioner Company, said that the settlement currency of the company was mainly the US dollar and the euro. The appreciation of the renminbi has always been very stressful, but the expansion of the exchange rate will also lead to unclear exchange rate expectations. The measures they adopt are to change the way of settlement, shorten the settlement cycle with trading partners, use some financing tools to resist exchange rate risks, and adopt exchange rate locking and futures operations.

"Enterprises must reduce short-term speculation and hedge operations."

"The export prospects are still uncertain, and the fluctuation of exchange rate has increased the uncertainty. The weathervane of the Guangzhou Trade Fair has changed rapidly, and the enterprises have to follow suit.

For foreign trade enterprises, it is necessary to increase the export of the area which can be used to settle the RMB. The way of settlement should be adjusted. It may also be based on the short list, but also to strengthen the research and risk management of the exchange rate fluctuation.

Peng Peng suggested that the state should speed up the internationalization of RMB and expand the settlement of RMB so that the renminbi will become the reserve currency accepted by more countries and regions, so that there is no need to worry about the impact of exchange rate fluctuations on enterprises.