Real Time Exchange Rate Protects Enterprise Income

"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.

"Ruble"

At the same time, foreign trade enterprises can use RMB 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, provincial textiles import and Export Co., Ltd. said that when the euro depreciated, our country

When signing contracts in the euro area market, we should try to be flexible and take the "short and fast" route, mainly in the form of short-term small contracts, which can be settled in US dollars first, and appropriately reduce the non US dollar currency settlement contracts signed with the euro.

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.

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According to the data released by China National Business Information Center this month, the number of retail sales of 100 major large-scale retail enterprises in 2014 increased by only 0.4% over the same period last year, slowing down for third consecutive years since 2012.

Among them, clothing retail sales increased by 1% over the same period last year, down 4 percentage points from the same period last year.

Retail sales of clothing decreased by 0.3% compared to the same period last year, 3.7 percentage points lower than the same period last year.

Insiders said that the overall situation of the domestic textile and garment enterprises, the proportion of exports and domestic sales accounted for roughly 50:50, and the RMB appreciation has continued to appreciate for a long time. Indeed, many export enterprises are under heavy pressure.

The depreciation of the RMB against the US dollar is conducive to reducing the cost of textile enterprises, enhancing the competitiveness of products, getting more orders, and on the other hand, is conducive to the exchange earnings.

However, an industry analyst of a brokerage firm told reporters that the depreciation of the RMB against the US dollar is a question. In addition, in the current situation, the depreciation rate is not large, so the positive effect on textile enterprises is very limited.

"Labor, raw materials, capital costs and so on are rising, compared to the extent of depreciation is not great."

The industry analysts also said that the more important thing is that the comprehensive cost of domestic textile enterprises is far higher than that of India, Vietnam and other Southeast Asian and South Asian countries.

Take Vietnam as an example, the footwear industry is now its third largest export industry.

In terms of footwear products, Vietnam Customs Department statistics show that in 2013, Vietnam exported shoes about 10 billion 320 million US dollars, an increase of 18% over the same period last year.

In the first half of 2014, Vietnam exported about 4 billion 600 million US dollars of shoes, an increase of more than 20%.