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Shaoxing Foreign Trade Enterprises Avoid Exchange Rate Risk Through Multiple Channels

2010/7/28 12:06:00 71

Exchange Rate Of Foreign Trade Enterprises

"The appreciation of RMB has once again been active, and the profit margins of our enterprises have been reduced considerably. Some long lists and large bills may be losing money." since the "two exchange reform" in June 20th, the RMB's exchange rate with the US dollar has been changing, affecting the chord of Mr. Zhang, an operator of export curtain household textile enterprises in our county.

RMB

Every appreciation of 1%, for foreign trade enterprises, is a direct reduction of 1% of profits.

For export enterprises, the appreciation of the renminbi, coupled with the uncertainty of the European and American economies, exchange rate risk is a problem that we have to face.

A week of foreign exchange reform

The county's foreign trade enterprises lost 60 million

Although the exchange rate reform is expected, most of the foreign trade enterprises in our county are not well prepared and do not take exchange rate risk measures.

The head of the county's foreign trade and Economic Cooperation Bureau said that in general, it takes 2 months for our county's export enterprises to export from the declaration to the foreign exchange remittance. Therefore, most of the export products exported in May and June or even in April will be settled at the new exchange rate, and the total damage to the total amount of US $1 billion 500 million is already a foregone conclusion.

It is understood that a week after the reopening of the exchange rate, the RMB appreciated by 0.56%. The total export settlement of the county was calculated at US $1 billion 500 million, and the loss of RMB appreciation was around 60 million yuan.

Multi channel evasion

exchange rate

risk

Under such circumstances, how should foreign trade enterprises deal with it? According to the head of international business department, Shaoxing branch, Bank of China

Li Jun Jun

It is introduced that after the reopening of the exchange rate reform, the fluctuation of exchange rate is aggravated. Enterprises can lock in the forward exchange rate at the right time, avoid the risk of large fluctuation of exchange rate, and also lock in the exchange rate of single order business, so as to lock in the proceeds.

For example, after the reopening of foreign exchange reform, foreign trade enterprises settled in June 23rd for a month long term settlement of 2 million US dollars, with a turnover date of from July 2nd to 26th and a fixed exchange rate of 6.7936.

After July 2nd, the spot settlement price fluctuated at around 6.76.

After collecting foreign exchange in the US dollar, the company settled in from July 2nd to 26th at a price of 6.7936, and now it has a turnover of US $1 million 600 thousand, with an income of about 67200 yuan.

In addition to bank products, credit insurance is also financing, and it can also effectively avoid exchange rate risk.

The head of the China Export and Credit Insurance Corp Shaoxing office told reporters that trade finance under export credit insurance is also effective in avoiding exchange rate risks, especially in terms of RMB appreciation.

It is reported that foreign currency loans acquired by foreign exchange through the bill can be settled into Renminbi and locked in advance.