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RMB appreciation can be used to avoid risk, iwc watches
reduce currency exchange costs, but the difficulty is to promote the area is limited, particularly in Europe and the USA generally do not accept this settlement.
Business-customized price increases to compensate for loss of profits resulting from revaluation is justified, but this approach has serious limitations and can only export in our country have greater bargaining advantage of the products, the use.
Bad situation in foreign trade, export more and more hours of business profits, avoid exchange rate risk has become a critical problem affecting the export business.
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After the 2008 financial crisis, RMB appreciation stopped. June 19, 2010, China launched a second exchange reform, the RMB exchange rate to resume its rally.
Will history repeat itself? Five years ago, China launched the reform on the first 3 years, the yuan continues to appreciate 20%; and the 2010 resumption of the second exchange reform, far too small appreciation of the yuan by 0.7%.
However, from this month’s performance, the RMB exchange reform has not appeared for the first time from 2005 to 2008 as a unilateral appreciation iwc
of the strong trend. Period, the central parity of RMB against the U.S. dollar exchange rate fluctuations, the maximum 6.7718, minimum 6.8275, forming a two-way volatility movements.
However, the exchange rate with the dull compared to the enterprise is more concerned about the impact of exchange rate on profits. Recently, the reporter interviewed the Appreciation of the investigation found that exporters generally agreed that continued appreciation of the yuan in the second half is a high probability event, and found higher will be gradual. Fang Jian estimated rate of RMB appreciation about 3% to 5%.
There is no doubt in the future revaluation of the yuan for some time, exporters will be a “serious problem.”
Early lead in the Chinese ministries and commissions under the relevant trade associations on labor-intensive sectors of the RMB exchange rate stress tests, the results show that if the appreciation of the renminbi in the short term 3%, Chinese home appliances, automobiles, mobile phones and other production profits would fall 30% ~ 50%; look at the textile industry, in other factors of production costs and prices unchanged, the yuan strengthened by 1 percent, corporate profits will be down 1%, while the average profit margin of textile industry, in fact, only 3% to 5 %.
Into 2010, an excellent foreign trade market at the moment the situation is reversed, the export business by the second half of the first half of optimism turned to pessimism. Zhongshan Dong Ling Lu Xiaohong, director of the power of refrigeration appliance company said: “The first half of 2010, companies are generally able to receive two months of export orders, but in the second half only received one month’s export orders from overseas clients is now obvious they can not under Order of. “Ministry of Commerce has predicted that the annual foreign trade will show a” high to low “trend.
In the foreign trade situation is not good, but profit margins getting smaller and smaller exporters – Central University of Finance and Banking Research Center survey showed that about 57% of small and medium export enterprises focus on after-tax profit margin of 5% or less – to avoid exchange rate risk export enterprises have become a critical problem.