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Taizhou foreign trade shoe enterprises actively respond to RMB appreciation

the continuous appreciation of RMB has become a great unstable factor for many export enterprises in the process of cost accounting. The list signed today may lead to losses tomorrow. 1n the face of foreign trade orders, enterprises are in a dilemma

recently, the central parity rate of RMB against US dollar broke through 6.7, rewriting a new record since the exchange rate reform. For industries that are more sensitive to this change, such as shoes, toys, clothing and other industries that are highly dependent on foreign countries, due to the lack of bargaining power, their tolerance of appreciation is often small, so the appreciation of RMB has a greater adverse impact on these industries

there are good ways to deal with the risk of RMB appreciation

RMB appreciation has swallowed up the profits of export enterprises and brought many risks to enterprises. 1ndustry experts have reminded that enterprises should improve risk awareness and take relevant measures to actively respond

in order to reduce the loss, most export enterprises adopt the way of price increase to offset the pressure brought by the appreciation of RMB. However, in addition, some enterprises also adopt the way of hedging to deal with the appreciation of RMB

“the appreciation of RMB is completely in our expectation!” Jin Dehua, financial director of Taizhou baolite Shoes Co., Ltd., said that at the end of February this year, the exchange rate was locked at 6.75 through the bank’s forward settlement and sales of foreign exchange. “At present, more than 35 million US dollars of transactions are settled according to this exchange rate, which greatly avoids the risk of RMB appreciation.”. According to Jin Dehua, the settlement exchange rate of 6.75 has increased the income of enterprises by more than 1 million yuan

however, Jin Dehua said that locking the exchange rate is a means to defuse the exchange rate risk, but whether the signing enterprises are winners or not depends on whether the RMB has appreciated and how much it has appreciated. 1n 2008, the RMB did not appreciate as expected by jindehua, and the exchange rate lock-in did not achieve much effect” But in any case, the enterprise just makes less money, and the most important thing is to defuse the risk. ” Jin Dehua said

due to the appreciation trend of RMB, “baolite” chooses more US dollar loans in terms of financing methods” The exchange income generated in the middle is still a considerable amount. ” Jin Dehua said that “baolite” has a certain popularity at home and abroad. This year, the company will ensure enterprise benefits without expanding its scale. 1t is estimated that the export volume this year will reach 350-360 million yuan, which is basically the same as last year

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