The Depreciation Of The Euro Triggered A Panic Of Foreign Trade &Nbsp; The Appreciation Of The Renminbi Is Expected To Increase.

"We only accept US dollar orders now, and euro orders will not be answered." In June 2nd, Mr. Li, vice president of a garden electric machinery and other electrical goods export enterprise in Nanjing, Jiangsu, told reporters that as the depreciation of the euro was very severe, enterprises were now afraid to accept Euro orders. "Now it is found that the euro is more reliable than the US dollar and has to stare at the US dollar."

Although most of their export orders are from Europe, they are required to settle in US dollars, Mr. Li said.

Devaluation of the euro triggered panic in foreign trade

In June 2nd, when the press deadline was written, the euro reached 1: 8.3706, which continued to decline. In a short period of six months, the exchange rate of the euro declined against the RMB exchange rate. After breaking through the "10" mark, it broke the "9" again and again, and now it is holding the momentum of Yu Yong. It has launched a wave of breaking the "8". Recently, due to the impact of the European debt crisis, the depreciation of the euro has reached about 15%, which has aroused many domestic and foreign trade enterprises panic.

"We had exported a product worth about 1000000 euros, and we lost it. This has strengthened our determination to settle in US dollars." Mr. Lee said that although the dollar was devalued and unstable, it has now found that the euro is more unstable. In the light of the current situation, the European economic recovery will be more difficult due to the European debt crisis, which is likely to have a significant impact on the euro trade in the second half of the year.

Shanghai leather trader Wang told reporters that as the end of last year signed a few euros order, now really miserable. "The export to the US this year will not fill the deficit in Europe," he said.

RMB appreciation expectations increase

"The depreciation of the euro is not the only bad factor. Now, another crisis comes from the expectation of RMB appreciation." Lee said that the company's export business has exceeded last year's total, reaching about 70000000 US dollars, but its profit has dropped sharply.

"There is a steady stream of orders over the past two days. However, it is estimated that there will be a significant reduction in the second half of the year." Mr Li said that the company's exports seemed to be "very hot" now. It did not seem to have been affected by the financial crisis. But in fact, the huge increase in orders did not bring high profits. He said that the reason for this is that European customers had strong expectations in the first half of the year, that the renminbi would appreciate, so the order was concentrated in the first half of the year. On the other hand, due to a substantial reduction in prices, the increase in orders and profits did not increase.

"Appreciation of the renminbi will be a fatal blow to foreign trade." Gu Xinyi, chairman of Shanghai de Lun te, said that the appreciation of the renminbi is very serious for the domestic market depreciation. If the RMB value is not maintained, the profit prospects of the export enterprises will be very confused.

Or drag on China's economic growth

At present, China's exports to the EU mainly include mechanical and electrical products, textiles, clothing, shoes and hats and so on. Among them, electromechanical products account for about half of the sales of export products. The depreciation of the euro will have a certain impact on the exports of these products, making export products more expensive in the short term, which greatly reduces the competitiveness of Chinese products.

"In fact, the proportion of Chinese products in the EU is relatively high, making these countries have a certain dependence on Chinese products. It is unrealistic to replace them with other products in the short term." Song Liang, an analyst at China commercial productivity promotion center, said there was no need to be too pessimistic about the devaluation of the euro.

Song Liang said that at present, China is in a period of spanformation, and external pressure will help speed up the pace of industrial spanformation in China. The worst reason is that the unemployment rate has reached the highest level in 12 years because of the EU's economic downturn. Even if the euro does not depreciate, the overall consumption power will also decline, not only by Chinese enterprises.

It can not be overlooked that the EU is the most important export market in China, accounting for 16% of China's trade. Affected by price increases, consumption growth has slowed down. If the export situation can not be reversed for a long time, China's economic growth is likely to slow down.