Euro Exchange Rate Breaking 8, Textile And Garment Industry Exports New Opportunities To Emerge

As Europe's debt problem intensified, the euro broke 8 on the 8 day after the yuan wandered.

The May 23rd announcement of the China foreign exchange trading center showed that the euro was 7.9980 against the central parity of RMB, a new low since June 19, 2002, and the euro returned to the "7 era".

Always right

Foreign trade enterprises, which are rather sensitive to volatility, have had a mild response.

Because for most enterprises, the depreciation of the euro will inevitably generate exchange risk, fortunately, the euro is not the main settlement currency in China. In contrast, the depreciation of its opening window conducive to imports is more worthy of concern.

Corporate exports are minimally invasive

"The export of the euro settlement business can be unlucky this time, and the goods that put out 100 thousand euros will not get the equivalent value."

Liu Xiaoguang, sales manager of Qingdao Shanhai household products Co., Ltd. was so surprised when he heard that the euro had a new trend toward the RMB exchange rate.

Liu Xiaoguang's company mainly produces creative household products, while the European market accounts for 30% of its total exports.

At the beginning of the financial crisis, the company used the euro settlement to avoid risks in order to avoid the excessive risk of US dollar fluctuations.

Fortunately, when the US dollar exchange rate was slightly stable in the late period, considering the higher degree of internationalization of the US dollar, and the experience of the US dollar in estimating the fluctuation range of the US dollar exchange rate, the company immediately started the US dollar settlement until now.

So Liu Xiaoguang's company avoided the exchange loss caused by the depreciation of the euro.

As a matter of fact, up to now, there are few foreign trade enterprises that share the same view with the Shanhai family.

Wujiang, deputy general manager of Fujian luozhi shoemaking technology development Co., Ltd. also said that not only foreign trade enterprises were reluctant to use Euro settlement, but most European merchants themselves did not want to use Euro settlement.

However, the value of avoiding suspicion is not high.

Devaluation "painless", in Liu Xiaoguang's words, enterprises are also "minimally invasive".

Liu Xiaoguang said frankly, at present, the demand of European market is not enough, and the purchasing power of European merchants has already declined. The depreciation of the euro will undoubtedly aggravate the situation and cause trouble to the export of enterprises at the market level.

Wujiang said that the European market accounted for 60% of the company's total exports, and so far, it has shrunk to 30%, a drop of 50%.

Foreign sourcing is now.

The depreciation of the euro brought about problems such as exchange risk and purchasing power, but also made the renminbi "more valuable" overseas.

In addition, with the recent demand for domestic market and the policy support of the state to encourage imports, many foreign trade enterprises say that the depreciation of the euro makes them feel more valuable when importing raw materials.

"Now is a good time to increase imports."

Wujiang pointed out.

According to him, the company imported rubber base and leather material from Italy and other European countries for a long time.

Although the overall rise in commodity prices has not led to a marked decline in the prices of some commodities, the downward trend brought about by the depreciation of the euro is objective.

Liu Xiaoguang also said that the company set up a plan to import more high-end home products from Europe the year before last, and began trial operation last year, resulting in good sales in the domestic market.

Therefore, this year plans to double the import scale.

"With the strengthening of the depreciation of the euro, we believe that this year's import target can be achieved earlier."

"In fact, now not only is the increase of procurement, capable foreign trade enterprises can consider taking advantage of this opportunity to buy factories overseas at a lower cost.

As far as I know, many enterprises have already begun to operate. "

Liu Xiaoguang said.