The Euro Slipped And Textile Exports To The European Union Again Encountered "Cold Current".

"In order to avoid the exchange rate risk brought by the appreciation of the RMB against the US dollar, we just settled on the euro earlier this year.

Who knows, "people are not as good as the sky". In the second half of the year, the euro has fallen sharply, and the depreciation rate of the RMB has been much faster than that of the US dollar. We are really at a loss.

Recently, the head of a textile export enterprise in Qingdao told reporters reluctantly.

Export enterprises have not yet fully adapted to the impact of the appreciation of the RMB against the US dollar. This year, the appreciation of RMB against the euro is accelerating. This brings another cold spell to the export enterprises under the influence of many factors.

Reporters learned from the Municipal Foreign Trade and Economic Cooperation Bureau, the EU is Qingdao's largest trading partner, the euro appreciation will have a certain impact on Qingdao textile and garment and other labor-intensive industries.

The European Union's poor economic data has led to a weakening of the euro, slowing the appreciation of the renminbi against the US dollar and accelerating the appreciation of the euro.

In September 2nd, the renminbi first broke through the 1 to 10 mark against the euro.

Since 2008, the appreciation of RMB against the US dollar has risen by 6.3%, compared with 9.4% against the euro.

Last week, the European monetary system experienced a slight improvement after nearly 1 months of deep adjustment.

However, experts believe that the euro area's inflationary pressure has not changed, and the downside risks of the economy have not diminished.

Last week, the euro area's core inflation rate rose to 2.6% last week, up from 2.5% in the previous 3 months last August.

Compared with inflation data, Europe's weak economy has risen, and the euro zone's 7 monthly trade deficit has risen from 200 million euros in June to 2 billion 300 million euros.

Although European central banks have prepared for the economic downturn, the risk of economic downfall is far more than that of the central bank.

According to the analysis of Ping An Securities Professionals, if the RMB continues to appreciate against the euro, it will affect the export of textile and clothing to the European Union. After the decline of the US textile industry, the export of China's textile and garment industry may need to meet another severe test, and the EU market will also have the possibility of growth and decline.

It is reported that since the abolition of textile quotas in junior high school this year, the growth rate of China's textile and clothing exports to the EU has accelerated, with an average monthly growth rate of around 40%.

In July this year, EU textile and garment exports amounted to US $4 billion 282 million, an increase of 28.74% over the same period last year.

This trend will slow down with the appreciation of the renminbi against the euro.

Earlier, because of the slowdown in demand and the appreciation of the renminbi against the US dollar, the growth rate of textile and apparel exports to the United States slowed down significantly, or even declined.

The impact of Qingdao's export to the EU shows that "the EU is Qingdao's largest trading partner, so the negative impact of RMB appreciation on the euro will be obvious."

Xu Zhenghua, director of the accounting department of the Qingdao Municipal Bureau of foreign trade and economic cooperation, told reporters that last year, the EU exported 5 billion 631 million US dollars to the EU, accounting for 21% of the total export volume of the city.

With the strength of the RMB against the euro and yen since the two quarter of this year, the export of Qingdao to the European Union, the United States and Japan will come down in the second half of the year. The current export volume to these three markets will account for about 57.3% of the total export volume of the city.

"The export growth situation that is affected by many factors will become more severe in the second half of this year."

It is understood that at present, the product structure of Qingdao exported to the EU is similar to that of the US export structure, which is mainly electromechanical products, textile and clothing, toys, shoes and so on.

Therefore, the impact of the appreciation of the renminbi on the export of Qingdao will also be the same as the appreciation of the US dollar.

Under the slowdown of the US economy, the EU economy has also been implicated.

Statistics show that in the first 7 months of this year, the growth rate of imports and exports of textiles and clothing in the United States and the European Union decreased or slowed down.

Because of the worries about the economic prospects of the United States and the European Union, such a great environment will inevitably affect the export of Qingdao's textile and clothing to the international market of major textiles.

On the other hand, Qingdao's exports to the European Union still rely mainly on products with low added value and weak competitiveness. Over 2% appreciation may make European retailers turn to other countries' trading partners, which will add a lot of pressure to the small profits of textile and garment enterprises.

However, due to certain profit margins, the mechanical and electrical products are relatively small.

To avoid the risk pformation and upgrading, many enterprises have gradually pferred the export market from the United States to Europe or adopted the euro settlement method after the appreciation of the RMB against the US dollar by 20%.

Today, the rapid devaluation of the euro has also made some of these exporters unprepared. Some companies have suffered large exchange losses.

In response, the experts cautioned that the domestic export enterprises settled in euros should have sufficient consideration for the factors of exchange rate changes when signing contracts.

At present, the marketization degree of RMB exchange rate formation mechanism is constantly improving, and RMB elasticity is constantly increasing.

Therefore, exporters should learn how to avoid risks effectively by developing financial instruments derived from foreign exchange.

At the same time, the labor-intensive enterprises represented by textile and clothing should take a long-term view, speed up pformation and upgrading, speed up the pace of market diversification, increase the added value of products, and strive for greater price space.

People in the city's foreign trade and economic cooperation said that although Qingdao's export enterprises account for only a small proportion of the settlement in the euro, the impact will not be too great in the short term.

But what we need to pay more attention to is the EU's economic downturn, which will add to the export of textile and clothing.

Therefore, it is suggested that relevant export enterprises should take relevant measures to avoid trade risks.