There Are Many Ways To Avoid Exchange Rate Risk In Foreign Trade Enterprises.

"Some time ago, the depreciation of the euro has caused great pressure on China's foreign trade export. The consumption power of Europeans is decreasing, and the order of EU buyers will be significantly reduced."

Shijiazhuang Hao Li Clothing Co., Ltd. exhibitors said.

"When the rouble is depreciated, foreign trade enterprises can use Renminbi as settlement currency, effectively reducing exchange rate risk and exchange cost.

In addition, foreign trade enterprises can effectively reduce the risk of exchange through localization.

Guangzhou Mei Chun Garments Co., Ltd., foreign trade sales manager, said in the morning.

Ho ho, Jilin textile import and Export Co., Ltd. said that when the euro depreciated, our export enterprises should try their best to flexibly sign contracts in the euro area market, take the "short and fast" route, and take short-term small contracts as the main ones. They can first settle in US dollars and appropriately reduce the settlement of non US dollar currency contracts.

In addition, enterprises can make use of all kinds of financial products to avoid exchange rate risk.

"Our export enterprises can consult with their clients. When the exchange rate changes drastically, they can be calculated according to the real exchange rate.

In addition, half euro and half dollar settlement can be considered. "

Xu Danna, business manager of Guangzhou Light Industry Group Import & Export Co., Ltd.

"Long term hedging has become the most mainstream and most effective reduction.

One way.

The so-called hedging, that is, after signing the euro sales contract with the client, the bank signs an agreement with the bank to specify the foreign currency currency, amount and time limit and exchange rate for future foreign exchange settlement.

Lu Tai textile Limited by Share Ltd said Sun Zhaokun.

Exhibitors of Liaoning Ming Chen Trading Co., Ltd. said that although the long-term settlement business could reduce exchange rate risk under the trend of RMB appreciation, the 1% annual guarantee made many export enterprises feel pressure.

In order to avoid exchange rate risk, foreign trade enterprises can adopt the way of US dollar settlement in advance, that is, the enterprises advance to the bank to borrow a certain amount of US dollars.

The interest rate of US dollar loans is lower, the loan amount and time limit are flexible and simple, and the general foreign exchange receivables cycle is the first quarter. Therefore, the interest rate will be around 0.3% during the quarterly period, which reduces the financial cost of foreign exchange enterprises to avoid exchange rate risks.

"In order to avoid the risk of exchange rate change, when an enterprise signs an export contract, it should set up corresponding clauses in the contract to avoid this risk. The best way is to increase the agreement on the loss of exchange rate changes in terms of price.

The larger amount of trade orders can be established at the time of signing the contract. When the settlement currency appreciates or depreciates, the export price will be raised or reduced accordingly.

Li Jie, an export salesman of Hangzhou import and Export Co., Ltd.

General manager of Rain Bird (Fujian) outdoor products Co., Ltd.

China's export enterprises can also negotiate prices with foreign buyers, but bargaining power is related to the size of enterprises and intimacy with customers.

If the scale of a company is large, its bargaining power is relatively strong.

If the price of raw materials is expected to rise, or at present

If there are businesses on the volatile nodes, bargaining can be made with the other parties in the agreed range, but small companies are not so strong.

"Foreign trade enterprises can hire professionals with high professional skills and strong technology to evaluate and predict the upcoming international trade. By increasing input of information, we can make an independent judgment of exchange rate. At the same time, foreign trade enterprises should set up reasonable risk management concepts and identify their most advantageous products to carry out international trade."

Xiamen Hongyang import and Export Trading Co., Ltd. exhibitors said.