China'S Foreign Trade Shoe Enterprises Cross Border RMB Settlement

"The exchange rate has gone up again."

At noon on November 27th, Mr. Weng, the financial manager of Wenzhou Jindi shoes industry, sighed at the exchange rate displayed on the computer.

For enterprises that export more than 100 million US dollars annually, the frequent fluctuation of exchange rate brings risks.

The latest data from the China Foreign Exchange Trading Center show that in August 24th, the central parity of RMB against the US dollar was 6.3896, and the exchange rate changed to a new high since then.

Recently, cross-border trade in RMB settlement within the territory.

RMB settlement priority order

"More than a year has been applied for the pilot project. Recently, we have tried out a business and promoted it again."

In November 27th, Weng manager, the financial manager of Jindi Shoes Co., was a bit excited on the phone.

He said the business is cross-border trade RMB settlement, the company's first batch of local applications in Wenzhou, one of the pilot enterprises.

"It's hard to convince German customers to try it this time."

Weng manager said, Jin Di

In June 2011, the German old customer and Kim Di shoes signed a RMB settlement agreement, with a batch of goods as a pilot project.

Mr Weng calculated that the contract price of the single shoes signed by the enterprises and foreign businessmen was 6.65 US dollars / double. According to the exchange rate of RMB to us dollar 6.45:1 on that day, the cost of the pair of shoes to the enterprise account was 42.89 yuan.

The goods have been declared at the end of the month, and they will be credited at the end of the month.

If settled in US dollars, according to the exchange rate of RMB to US $6.374: 1 in November 27th, the actual amount of money to be paid is only 42.3871 yuan, and the difference between a pair of shoes is 0.5 yuan, and the goods have more than 7000 pairs of shoes.

"In order to avoid exchange rate risk, we will adopt a long-term lock in rate, but every time the RMB appreciation will be faster than expected."

Since 2011, the yuan has appreciated more than 3% against the US dollar.

"After the RMB is settled, there will be no such problem."

Weng manager said that the premise is that customers are willing to accept.

According to the regulations, the other side will open renminbi accounts in Hongkong.

Taizhou Tai Jiang Shoes Co., Ltd. is the first 19 foreign trade enterprises to apply for cross-border trade RMB settlement pilot enterprises.

More than half a year, chairman Wang Jianglin felt a lot.

"Now when I see a new client, I first ask him if he is willing to settle in RMB, and if he is willing, he will take the first place."

Most customers do not "catch a cold".

According to the analysis, most enterprises still have obstacles in cross-border RMB settlement.

"The number of peers around us is too small to settle in Renminbi, which is hard for most foreign businessmen to accept."

Weng manager said.

"The wishful thinking of enterprises is useless. The problem is that customers are not interested."

Jiang Yimin is the chairman of Zhejiang new great group.

As one of the first batch of pilot enterprises for RMB settlement in cross-border trade in Zhejiang, the group has so far not implemented a RMB settlement business.

Foreign businessmen are counting accounts too.

Although cross-border RMB settlement has started to thrive, there are still many bottlenecks.