Foreign Trade Enterprises Have Multiple Strategies To Deal With Exchange Rate Fluctuations

< p > since mid February, the RMB has changed its long-term appreciation trend, and its total depreciation has fallen by nearly 3%.

In the context of the global economic rebound, foreign trade enterprises are looking for countermeasures, hoping to avoid "a href=" http://www.91se91.com/news/index_cj.asp "exchange rate risk > /a while catching favorable fluctuations.

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< p > < strong > enterprise viewpoint < /strong > < /p >

< p > < strong > short term good fortune and long term hidden trouble < /strong > < /p >

"P" in February this year, the interbank market to the a href= "http://www.91se91.com/news/index_cj.asp" > RMB < /a > the immediate exchange rate rose from the lowest 6.0406 to 6.15.

Subsequently, the central bank announced that the unilateral fluctuation of the US dollar to RMB paction price will be expanded from 1% to 2%.

The US dollar to the RMB exchange rate broke through the 6.20 pass at a single peak, reaching a maximum of 6.2370, rising by nearly 1900 basis points compared with 6.0406, and the cumulative depreciation rate of RMB was nearly 3%.

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The depreciation of RMB P makes the export products more advantageous in price. Some enterprises welcome this.

Liu Ren, general manager of Guangdong Dongpeng ceramic Limited by Share Ltd international trade department, told reporters that "the depreciation of RMB has alleviated the cost pressure brought by the high price of labor and raw materials to a certain extent, which has led to a slight increase in the volume of foreign trade orders recently."

Liu Ren said.

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Huang Tanglin, business manager of Shenzhen P Electric Appliance Co., Ltd., Iasi, said that the devaluation of RMB is theoretically beneficial to the export of enterprises. However, in recent months, this effect has not been promoted.

In the long run, the instability of exchange rate is a big worry of "a href=" http://www.91se91.com/news/index_cj.asp "foreign trade enterprise < /a >.

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< p > "when a new contract is signed, a foreign customer will ask the company to give up the profit on the basis of the depreciation of the renminbi."

Liu Ren said that if the price of the renminbi rises again, the manufacturing enterprises may suffer losses.

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< p > Liu Ren told reporters that the proportion of exports accounted for about 50% of the total sales volume of enterprises.

The current RMB exchange rate volatility has indeed increased the risk of export.

For this reason, when they sign a contract, they usually lock in the exchange rate with foreign merchants to avoid risks.

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< p > "the fluctuation of RMB exchange rate affects the nerves of enterprises."

Wei Dengbo, director of Jieyang Da hung Xing plastic products Co., Ltd., told reporters that orders were mostly small, single and short.

"We still hope that the RMB exchange rate can operate smoothly."

Wei Dengbo said.

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< p > < strong > Bank recommendation < /strong > /p >

< p > < strong > better use of value maintenance business to control exchange cost less than /strong > /p >

< p > reporters learned in the interview that more and more foreign trade enterprises began to choose hedging and other businesses to avoid risks.

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Miki, director of Fujian P import and Export Trading Co., Ltd., Ma Guoning, told reporters: "enterprises are currently hedging their orders for larger orders."

He said that the forward exchange rate of foreign exchange for the future earnings of enterprises will be locked, although this improves the cost to a certain extent, it can effectively avoid the risk of price fluctuations in the spot market and increase the certainty of corporate profits.

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< p > the foreign exchange expert of Guangdong branch of Bank of China suggests that enterprises can proceed from the exchange rate hedging and conduct long-term forward settlement and exchange or Renminbi option business in order to maintain value and avoid exchange rate risk.

It indicated that in addition to the traditional hedging products such as forward settlement and sale, with the increase of two-way volatility, the "lock in" RMB option business products are now popular among more companies.

"An enterprise can buy a foreign exchange option and sell a settlement option, locking the future exchange cost of an enterprise in one interval to avoid the risk of exchange rate."

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< p > bankers also say that different products have different hedging characteristics. For large foreign trade enterprises, the effective operation strategy to avoid exchange rate fluctuations is comprehensive allocation of value preservation channels, which distracts the single product's flaws. Enterprises can consider signing contracts in batches to reduce the interference of time factors.

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< p > < strong > post market judgment < /strong > < /p >

< p > < strong > the exchange rate volatility is higher than before, < /strong > < /p >.

On Friday, the Central Bank of the people's Bank of China authorized the China foreign exchange trading center to announce a 6.1495 rise in the RMB against the US dollar, a slight increase of 15 basis points.

After the Ching Ming holidays, the central parity of the renminbi rebounded several times. Although it fell back on Thursday, it finally rebounded with a slight appreciation.

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Gao Shanwen, chief economist at Anxin securities, believes that, in the long run, many factors supporting the appreciation of the renminbi over the past 10 years are disappearing and reversing. For example, the current account surplus is narrowing, and the US dollar vulnerable period is coming to an end. The capital outflow control will be released step by step.

But judging from the medium-term trend in the past two or three years, the renminbi is still in the path of appreciation.

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P, chief economist of Credit Suisse Asia, wrote in April 9th that the most important reason for the depreciation of the renminbi is that the central bank has broken the expectation of unilateral appreciation of the RMB formed by the market, and is expected to rise to the beginning of the year.

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< p > the analysis of foreign exchange experts of the Guangdong branch of the Bank of China believes that the unilateral appreciation of the renminbi has been broken, and arbitrage has been effectively curbed and the RMB market is healthier.

"The volatility of the RMB exchange rate in the future will be higher than before.

Short term, the current spot price of RMB in the 6.19 to 6.22 interval digestion of the previous decline, enterprises can be guided by the middle price, in batches signed hedging products.

It is suggested that enterprises should configure more options products to achieve a win-win situation in both volatile market conditions and enjoy favorable fluctuations.

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