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Substantial Depreciation Of The Euro, Shoes And Clothing Export Enterprises At A Loss

2008/11/5 8:54:00 22

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Substantial Depreciation Of The Euro Shoes And Clothing Export Enterprises At A Loss

Driven by the risk aversion of the international exchange market, the euro has been even lower than the US dollar: the central parity of RMB against the euro has risen rapidly this week and has broken through the "9" integer pass.

This not only confuses export oriented enterprises to exchange rate, but also makes the citizens holding euros at a loss.

Shoes and clothing export enterprises are at a loss

A Wenzhou shoe company official told reporters that since 2006, in order to avoid the exchange rate risk brought by the appreciation of the RMB against the US dollar, they have changed their export products from the US dollar settlement to the euro settlement.

The euro has fallen sharply in the second half of this year, and the depreciation rate of the renminbi has been much faster than that of the US dollar.

　　

Cai Tianhuan, chairman of Zhejiang fester Garments Co., Ltd. is also full of worries: since the euro fell against the US dollar in July 15th, the euro has depreciated more than 20% in a short period of time, and the pressure of export oriented enterprises is huge. European Importers are also at a loss.

"The depreciation of the euro is so great that European importers generally hold two attitudes: one is to keep on waiting, because as long as a single order means loss, importers do not start ordering Chinese enterprises.

The two is to continue to drag money. Even if the contract is signed and the goods have arrived, European businessmen have to wait for a while to wait until the euro appreciates.

Cai Tianhuan said that although the state raised the export tax rebate ratio of textile and clothing, the exchange rate fluctuated violently, and export enterprises were still helpless.

Under the condition of fog and heavy exchange rate fluctuations, what currency should be used to settle accounts?

Hu Yiyan, vice president of Wenzhou song Tai branch of Bank of China, believes that in terms of currency settlement, it is very difficult to avoid the loss of exchange rate between enterprises and individuals. It is important to adopt hedging measures and control exchange rate risk as far as possible.

At present, the "foreign exchange right treasure" and "Euro forward sale and purchase" launched by banks are good hedge measures.

People who have euro on hand may wish to settle their foreign exchange.

Not only are exporters worried, but many people with euros are also puzzled.

Mr. Liu, who has more than 10 thousand euros on hand, has no settlement. The uncertain exchange rate makes him very concerned about the fate of the euro held at hand.

Ye Lehua, the foreign exchange management center of Wenzhou branch of Agricultural Bank of China, believes that investors with idle Euros can reduce exchange rate losses by buying financial products.

It is best to choose a short-term product with a guaranteed cost design, relatively simple investment target, and a few months' investment period.

However, from the previous experience, some banks launched foreign currency financing products will be linked to design, or related to derivatives, in the context of the subprime mortgage crisis, such investment is hidden greater risk.

Judging from the trend of the past 3 months, the yen is the most powerful currency, and the renminbi and the US dollar are only second only to the yen.

Mr. Liu's hand held euro and other currencies for the time being, if there is no other purpose, "in the case of being able to bear losses, it is suggested that foreign exchange be settled as soon as possible or part of the exchange will be converted into Renminbi."

Euro income may not be as good as exchange rate losses, rather than Renminbi deposits.

(Jia Xiao)