RMB Appreciation Over 8% Against US Dollar In Half A Year

From the low level at the end of May to now, the exchange rate of RMB has been rising all the way, and recently it has risen to around 6.5, entering the "6.5 era". On November 25, the central parity rate of the renminbi against the US dollar rose 60 basis points to 6.5749, compared with 6.5809 the previous day, according to the China foreign exchange trading center. As of 16:20, the offshore RMB exchange rate was 6.5722 against the US dollar, while the onshore RMB exchange rate was 6.5786. If calculated by the lowest point of 7.1775 on May 27, the appreciation rate of RMB has reached 8.3%.

Wang Youxin, a researcher at the Research Institute of Bank of China, said in an interview with Securities Daily that the recent strong performance of RMB mainly stems from two aspects: first, the favorable effect brought by the signing of RCEP, and the further promotion of regional integration in the Asia Pacific region will help promote China's export trade growth and economic recovery; On the other hand, the continued weakness of the US dollar dropped to about 92.2 again, and the depreciation rate reached 0.8% last week, which promoted the passive appreciation of RMB exchange rate.

However, for foreign trade enterprises, the appreciation of the RMB is a source of joy and concern. "When the local currency appreciates, the price advantage of export commodities will be reduced, and the imported goods will be relatively cheaper. Therefore, it will be beneficial to import enterprises, with limited impact on import processing and re export enterprises, but greater impact on export enterprises." As far as foreign exchange rate risk is concerned, it is also very important for foreign trade economists such as China and Bangladesh daily to make forward-looking judgments on exchange rate risk of foreign trade enterprises.

Foreign trade enterprises themselves are not only sensitive to the exchange rate. The reporter of Securities Daily noted that recently, on the interactive platform, many investors have raised questions about the impact of exchange rate fluctuations on the operation of listed companies involved in foreign trade.

On the interactive platform of Shanghai Stock Exchange e, some investors asked "Suli shares". The company's export business accounts for a large proportion. How does the recent appreciation of RMB against the US dollar affect the company? To this end, Suli shares responded, "the company's export sales revenue accounts for a relatively high proportion, and the settlement currency of the company's export business is all US dollars. If the RMB enters the continuous appreciation channel, maintaining the current pricing level of the company's export products may lead to the decline of the company's profitability. The management of the company will reduce the adverse impact of exchange rate changes on the company's operating performance, as well as the financial and capital risks arising therefrom by strengthening the management of foreign exchange funds, carrying out foreign exchange hedging business, and speeding up the recovery cycle of foreign currency receivables

Another investor asked "Mingzhi electric", the company's overseas revenue accounted for a large proportion, how to hedge the risk of RMB appreciation? Mingzhi Electric said that under the condition of ensuring normal foreign exchange demand, the company carried out foreign exchange derivatives trading business within the scope authorized by the board of directors, mainly including foreign exchange forward, foreign exchange swap, foreign exchange option, structural forward and other necessary foreign exchange management measures. It is based on the real exchange rate and risk aversion of all derivatives transactions, based on the real exchange rate and risk aversion.

There are also investors' questions about "Baolong technology". The company's export accounts for as high as 70%, and whether the company has taken hedging measures recently due to the sharp appreciation of RMB. In response, Baolong technology responded, "as a global auto parts supplier, facing the fluctuation of exchange rate, our company mainly uses import and export business hedging, foreign currency assets and foreign currency liabilities balance, foreign currency income and payment balance In the face of external environment, we should adjust the unit price of foreign currency and adjust the settlement currency to achieve balance

On the interactive platform of Shenzhen Stock Exchange, "Dongfang Risheng" responded to the problem of the impact of the sharp appreciation of RMB on the company. The company will reduce the risk caused by the fluctuation of foreign exchange rate by means of forward foreign exchange transaction, foreign exchange risk guarantee, shortening collection period, adjusting the proportion of euro and US dollar sales settlement.

On the question of "whether the fluctuation of RMB / USD exchange rate will have a significant impact on the company", Guangdong Hongtu said that the company's export business is mainly settled in foreign currencies such as US dollar and euro. With the continuous development of overseas business, when the exchange rate fluctuates greatly, the company may have a greater exchange loss risk. Therefore, while continuing to increase the domestic market development, the company will determine the product price in the form of RMB or exchange rate linkage through appropriate use of foreign exchange hedging tools and active communication with customers, so as to minimize the impact of exchange rate fluctuation on the company's operating performance.