Taizhou foreign shoe companies actively respond to the appreciation of the renminbi

The continuous appreciation of the renminbi has become a major destabilizing factor for many export companies in the process of accounting for costs. Today's list may have a loss tomorrow. In the face of foreign trade orders, companies face a dilemma.

Recently, the renminbi exchange rate against the US dollar exceeded 6.7, rewriting the new record since the exchange reform. For industries that are sensitive to this change, such as footwear, toys, and clothing, where industries with high levels of external dependence are relatively unaffordable, their tolerance for appreciation is often small. Therefore, the adverse impact of RMB appreciation on these industries is also relatively large. .

Responding to the risk of RMB appreciation

The appreciation of the renminbi has swallowed the profits of exporting companies and brought many risks to the company. Industry experts have warned that companies should raise awareness of risk and take relevant measures to actively respond.

In order to reduce losses, most export companies adopt price increase methods to offset the pressure caused by the appreciation of the renminbi. However, in addition, there are also companies that hedge against appreciation of the renminbi by way of hedging.

"The appreciation of the renminbi is completely within our expectation!" said Jin Dehua, chief financial officer of Taizhou Baolite Shoes Co., Ltd., at the end of February this year, the exchange rate was fixed at 6.75 through the bank's forward settlement and sales. "There are already more than 35 million. The transaction volume of the U.S. dollar is settled at this exchange rate, which greatly circumvents the risk of RMB appreciation." According to Jin Dehua, the 6.75 settlement rate for the company has increased more than 100 million yuan in revenue.

However, Jin Dehua said that the lock-in exchange rate is a means to defuse the exchange rate risk, but whether the contracted company is a winner and ultimately depends on whether the renminbi has appreciated or not. In 2008, the renminbi did not appreciate as Jin Dehua predicted, and exchange rate locking has not produced any results. "But in any case, companies just make less money, and resolving risks is the most important thing," said Jin Dehua.

Due to the tendency of the quasi-renminbi to appreciate, "Bao Lite" has chosen more US dollar loans in financing methods. “The exchange gains generated in the middle are still a considerable number.” Jin Dehua said that “Bao Li Te” has a certain reputation at home and abroad. This year, the company will ensure the company’s profit without expanding the scale. It is expected that this year’s Exports will reach 3.5-3.6 billion yuan, basically the same as last year.