Appreciation Of RMB Keeps Increasing Pressure On Footwear Exporters.

Guangzhou customs statistics show that from 1 to February this year, there were 1512 enterprises in the Pearl River Delta region to participate in export shoes, representing a decrease of 1855 over the same period last year.

Statistics from the footwear association of Asia show that since last year, there are more than 1000 shoe factories and related supporting enterprises in Dongguan, Huizhou and other places in Guangdong.

Shanghai Securities News reported that under the pressure of RMB appreciation, nearly two thousand of the shoe factories in the PRD abandoned their export business for self insurance.

It is understood that usually the shoe enterprises take orders to get the full refund period at the end of 3 months, some large customer cycles may exceed 6 months, although the two sides will have expectations of exchange rate when the contract is signed, but the average appreciation of the RMB that the shoe companies usually negotiate with the customers is not as good as the actual appreciation of the payment.

Under such circumstances, enterprises evade the risk of appreciation by various tricks.

For example, some shoe factories give up export business for self insurance, some enterprises turn to Euro settlement or set price effective period and so on.