Exchange Rate Locking To Resolve RMB Appreciation Risk

Reporters learned that footwear industry Toys, clothing Industries such as those with high external dependence are more sensitive to the change of the RMB exchange rate. Due to the lack of bargaining power, the appreciation rate that they can tolerate is relatively small, so the export of these industries will be adversely affected by the appreciation.

Multi channel solution RMB appreciation risk

RMB appreciation will swallow up profits of export enterprises. Is there any suitable way to reduce losses? The reporter learned from the interview that most export enterprises are considering increasing the prices of export products to offset the impact of RMB appreciation on enterprises. In addition to the way to raise the price of products, there are also ways to hedge RMB appreciation by means of hedging.

"The RMB appreciation is totally within our expectation!" Jin Dehua, chief financial officer of Taizhou poly shoes limited, told reporters that by the end of February this year, the exchange rate was locked at 6.75 through the forward sale and exchange of banks. "At present, the transaction volume of US $about 35000000 is settled at this exchange rate, which greatly avoids the risk brought by RMB appreciation." According to Jin Dehua, the settlement rate of 6.75 has increased the income of about 1000000 yuan for enterprises.

But Jin Dehua said that fixing the exchange rate is a way to defuse exchange rate risks, but whether the contracting companies are winners or not, it depends on the appreciation of the renminbi and the extent of appreciation. In 2008, the renminbi did not appreciate as expected by Jin Dehua. Exchange rate lock did not achieve any effect. "But in any case, the business is just making less money. It's the most important thing to defuse risk." Jin Dehua said.

Because of the trend of appreciation of Renminbi, "poly" chooses more US dollar loans in the way of financing. "The exchange yield generated in the middle is still a large number." Jin Dehua said that "Bao Li" has some popularity at home and abroad. This year, the company will not only expand its scale, but also ensure its efficiency. It is expected that the export volume will reach 3.5-3.6 billion yuan this year, basically unchanged from last year.

Experts in the industry have warned that under the background of RMB appreciation expectations, enterprises must have a sense of risk and take relevant measures. For many manufacturing enterprises, if the RMB continues to appreciate, enterprises may not be able to carry it, so it is necessary to do a certain percentage of exchange rate locking.