Changes In The RMB Exchange Rate Affect The Profits Of Textile And Garment Export Enterprises

< p > recent rainy days add a bit of sultry to Foshan, Guangdong's foreign trade city.

However, Nie Ruixin, sales manager of Foshan Yunhong Cotton Industry Co., Ltd., is not just the sultry weather.

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< p > data from China's < a href= "http://sjfzxm.com/news/index_cj.as" > foreign exchange < /a > Trading Center show that in April 17th, the central parity of RMB against the US dollar was 6.2342, up 66 basis points from the previous trading day, and the highest level since the fourth consecutive day.

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< p > the RMB exchange rate has continued to rise, and the impact of domestic a target= "_blank" href= "//www.sjfzxm.com/" > textile < /a > export processing enterprises is the biggest.

China's textile export enterprises are mainly private small and medium-sized enterprises, and have no voice in international trade. Most of their foreign businesses are settled in US dollars.

With the rise of the RMB exchange rate, the profits of these enterprises are further evaporated, and the production and operation situation is worsening.

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< p > Nie Ruixin said that every export order of an enterprise needs to negotiate with foreign customers first, confirm the conditions of price and delivery, and then make the order to the factory for production, and finally deliver the product to receive the money.

"This cycle will be less than two months, once the exchange rate goes up, the loss will be very great."

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< p > there is an account in the mind of every enterprise for the pressure of RMB appreciation.

Nie Ruixin, for example, an order of 1 million US dollars. Today when an enterprise confirms its price with foreign customers, the middle price of the exchange rate is 6.23. If it becomes 6.13 after two months, the profit will be reduced by 100 thousand yuan.

The total profit of such a list is usually 2.3 million yuan.

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< p > Nie Ruixin has been doing textile export business for seven years.

Over the past seven years, staring at the computer every day has shown that the change of a href= "http://sjfzxm.com/news/index_c.asp" > exchange rate < /a > is his essential homework.

"For foreign trade enterprises, the change of exchange rate is directly related to the export and order of products".

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< p > of course, the trend of RMB appreciation has never come to light recently.

Nie Ruixin recalled the situation in 2008.

"In that year, the RMB broke through the 7 yuan mark against the US dollar, and it was the new high since then.

The export price is high, the order is lost, the quoted price is low, and the loss of the company is large. This makes us difficult.

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In the face of frequent fluctuating exchange rate, P textile export enterprises have taken some effective measures.

"What we are using now is the system of immediate settlement to the month, which reduces the risk of exchange rate fluctuations in a short time to a certain extent."

Guo Qihua, general manager of Nantong Jiangyuan economic and Trade Co., Ltd., which is mainly engaged in exporting women's clothing, told reporters that in addition to the financial instruments such as immediate settlement budget and long-term settlement business, more and more export trade enterprises joined the team of export credit insurance.

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< p > Nie Ruixin said that many large trading enterprises involved in import and export trade, which would eliminate some risks.

And small businesses such as their own pure export outlets need to consider other hedging methods, including forward settlement, renminbi futures and so on.

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< p > in addition, we know that with the development and maturity of cross-border trade RMB settlement business, some export enterprises have actively striving for RMB as settlement currency for financial convenience and circumvention of foreign exchange risk.

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