2011-01-22

Foreign trade companies to survive the "winter"? - [China export company]

版权声明：转载时请以超链接形式标明文章原始出处和作者信息及本声明
logs/101138156.html

China Foreign Exchange Trade data show yesterday, the central parity of RMB against the U.S. dollar exchange rate of RMB 6.5883 to 1 U.S. dollar for the third consecutive day since the rewrite the record high exchange rate reform; At the same time, the market interest rate expectations continue to heat up. Then, in the interest rate, exchange rate of the potential double-liter cases, affected by foreign trade enterprises in Ningbo extent of how companies hedge? Faced with these questions, this reporter recently visited some enterprises and related departments.

Interest rates were rising trend both

Since last October, the central bank twice raised benchmark deposit and lending interest rates, ending three years without interest situation. The purpose of raising interest rates from the point of view, more of a control inflation expectations. Analysis of the central bank recently released a report that because of rising food prices and income distribution, and further reform of resource prices, we also consider the international commodity price uncertainty, the future price pressures should not be overlooked. The industry have predicted for some time this year, anti-inflationary monetary policy will become an important concern, if prices continue to rise, the central bank might also consider consecutive rate hikes.

Exchange rate, since last September has been the rapid appreciation of the RMB against the U.S. side, and continue to record high. University of Nottingham Ningbo, Deputy Director of International Finance Research Center, Dr. Ma Qingping analysis that the current renminbi per dollar purchasing power in China was significantly higher than the purchasing power of a dollar in the United States, according to the principle of purchasing power parity of RMB exchange rate's long-term trend is to continue to rise. Moreover, to maintain the RMB exchange rate on the one hand in the low trade surplus and foreign exchange reserves will increase, triggering trade frictions, on the other hand also increased domestic liquidity, resulting in inflationary pressures. This will also result in the RMB exchange rate gradually rising trend in the next show.

Ningbo export enterprises are facing challenges

When reporters visited a number of companies understand that interest rate "double up", the U.S. dollar issue of control as well as international commodity prices continue to rise, the city's foreign trade enterprises, especially some of the export of footwear, toys, clothing, Commodity and other value-added is low, raw materials, labor-intensive than the major companies was severely affected. Part of the narrow profit margins of foreign trade enterprises a lot of export orders in the first half part of the verge of signing a loss. Taking into account the large exchange rate movements, some more cautious foreign trade enterprises grasp the orders, resulting in large single and one not easily take long, and one of the little big, long one of the short phenomenon.

Yinzhou District, a clothing company's executives told reporters, forced by competitive pressures, the company can not easily raise prices to prevent customers "another vote for him the door." RMB appreciation means that the dollar-denominated commodities less competitive, the price of foreign currency to make exports remain unchanged, and only further lower product prices, cost pressures have been rising, which cause greater impact on the labor-intensive enterprises.

In addition, some export enterprises financing costs. While the floating rate benchmark lending rate is not, but does not rule out the possibility of consecutive rate hike, to face the RMB appreciation, rising raw material prices, foreign trade protectionism is rampant, slow economic recovery in Europe and America, the domestic pressure on labor costs of foreign trade enterprises and other multi- is undoubtedly "worse."

The integrated use of financial instruments hedging

Faced with the current complicated situation, the city's foreign trade enterprises how to plan ahead, deal with the current pressure? Ningbo branch of Bank of China, Wu Sihai financial business analysis, companies can take the following measures to hedge:

Forward foreign exchange business is the most commonly used international financial market hedging instruments. To carry out forward foreign exchange can take advantage of forward foreign exchange hedging function, forward foreign exchange operations offset by exchange rate fluctuations on the impact of foreign trade enterprises, the company focused on the production and management, fluctuations in exchange rates, still remain stable level of profits. Enterprises can lock the forward exchange rate in due course, to avoid the risk of exchange rate volatility can also lock the exchange rate of single order business, thus locking revenue. Of course, there are some long-term foreign exchange settlement risk, foreign trade enterprises to conduct rigorous risk control, follow the lock exchange rate risk, hedging principles, not to speculation, arbitrage transactions operation. In addition, in view of the long-term appreciation trend of the renminbi, customers choose the mode of financing can be more dollars in loans.

Meanwhile, full and good use of RMB cross-border settlement policy is also an important way. Growing expectation of RMB appreciation, often used for trade settlement in U.S. dollars of export enterprises will face even more serious exchange rate risks. RMB settlement to cross-border export enterprises can bypass the U.S., directly through the RMB to be settled with overseas buyers, so that the enterprises not only locked in advance of the costs and revenues, but also to avoid exchange rate risk. It is reported that in July last year the city People's Bank of China and other ministries has recommended the first cross-border trade exports pilot enterprises RMB 3040, is currently awaiting approval. Business people hope that the relevant departments to business training and other preparations for the pilot to roll out the business as soon as possible.

Ningbo Branch of China Export & Credit Insurance, a charge that, in addition to banking products, credit insurance also could avoid exchange rate risk. Export credit insurance companies can trade financing obtained under the settlement of foreign currency loans into RMB using the exchange rate locked in advance.

"In the long run, enterprises should improve the response level, but also effectively improve the capability of independent innovation, speed up transformation and upgrading. Only to develop their own core business, increase the value-added products through technology innovation, quality win, improving competitiveness, is the breakthrough difficulties, the fundamental way based on the market. "Ningbo City Finance Office of Banking, Insurance Department, says a responsible person.