RMB Appreciation Tests Foreign Trade Enterprises

September 27th,

Since entering September, the central parity of RMB against the US dollar has started to go all the way, and has continuously hit a record high.

In September 22nd, the central parity of RMB against the US dollar was reported at 6.6997, breaking through the 6.7 pass in one fell swoop and entering the "6.6" era.

In the restlessness of RMB appreciation, many foreign trade enterprises are becoming more and more frowned.

Because the appreciation of the renminbi - the reduction in the profit of the order - the pressure of business operation is increasing, and it is just like a hoop tightly winding up the operators of these foreign trade enterprises.

At the moment, how to struggle with the whirlpool of RMB appreciation is becoming an urgent problem for more and more foreign trade enterprises.

The difficulty of appreciation

Since September, the pressure of the RMB exchange rate has doubled.

"RMB appreciation has great impact on the operation of enterprises."

26, Zibo Huantai a leather enterprise official told the newspaper.

According to the person, the leather products produced are mainly exported to the United States, Britain and other European and American countries.

And the appreciation of RMB since September is making enterprises face the dilemma of reducing profits.

Meanwhile, the head of a foreign trade enterprise in Zibo high tech Zone is also suffering from the appreciation of the renminbi.

In addition, other factors including labor cost, product raw material cost and other factors also aggravate the operational difficulties brought by the appreciation.

"At present, there is basically no profit. The business is to maintain customers and avoid losses."

The person in charge of Zibo Feng Zhi Yuan Trading Company had admitted before accepting this newspaper interview.

It is noteworthy that many of the heads of foreign trade companies interviewed by the newspaper think that the appreciation of RMB has exceeded or approached their psychological bottom line.

According to the above director of Huantai leather enterprise, the appreciation of RMB in September exceeded 2%, which has exceeded its psychological limit.

In this regard, a survey of more than 10 provinces and a total sample size of 1900 export enterprises has also revealed that most of the export enterprises can bear the appreciation rate of RMB less than 2%, accounting for 39.7% of the total sample size. The enterprises who can bear the 2% to 4% value of the RMB account for 33.8%, and the enterprises who can appreciate 4%- 5% are 19.1%.

As for the newspaper, Internet and TV coverage of the RMB exchange rate dispute between China and the United States, the head of leather enterprises in Huantai said with reluctantly, "there is no mood at all to care about these things, only hope that the RMB can depreciate."

In fact, the tide of RMB appreciation in September has begun to affect the order of enterprises.

"Orders in September are lighter than in August, with a decrease of about 20%."

Huantai leather enterprises responsible person told this newspaper.

Game warfare of enterprises

Nowadays, with the accelerated pace of RMB appreciation, many enterprises are trying to catch up with all kinds of methods.

"Facing the pressure of appreciation, enterprises are also constantly dealing with it."

The head of the leather enterprises in Huantai said that at present, its enterprises are coping with the tide of RMB appreciation by opening up new overseas markets.

In fact, when we interviewed the foreign trade industry many times, foreign trade enterprises expressed their concern and attention to the emerging foreign trade market.

However, due to the long period of opening up new markets and other factors, facing the sudden rise of the RMB exchange rate, this newspaper survey found that more companies often take two measures to postpone the delivery time and raise the price of products, so as to cope with the tide of RMB appreciation in September.

"We have pushed away some Christmas orders in recent years."

In mid September, the head of a toy enterprise in Zibo once said in an interview with this newspaper.

Now, postponing order delivery time is a common behavior.

Among them, some domestic media have reported that some enterprises in the South have made efforts in order delivery time.

According to the person in charge of a shoe enterprise in the south, the company has signed an order within 3 months with a foreign customer last month.

But in September, the appreciation of the renminbi continued for many days, so that the company could only drag the delivery date of the order, hoping that the renminbi would have room to fall back.

However, some foreign trade people say that the delay in order delivery time can easily aggravate the cost of the enterprise.

At the same time, some enterprises have chosen the measure of product price increase.

"We have raised prices for some of our products."

On the 24 day, the person in charge of leather enterprises in Huantai said, however, the price increase was very small. "We are more inclined to raise the selling price by introducing new products."