The Euro Depreciated Shoes Export Enterprises At A Loss

HC Network on November 4 hearing on the international currency markets, driven by risk aversion, with the euro against the dollar recently reached a new low: Renminbi Central parity against the euro boosted by the rapid rise from this week, and broke through to “9” integer crossings. This is not only to Export Enterprise for the exchange rate puzzle, but also to make people know what to do hand holding the euro.

Shoes export enterprises at a loss Wenzhou shoe enterprises

one official told reporters that, starting in 2006, in order to avoid appreciation of the RMB against the U.S. dollar exchange rate risk arising, they will export products from the original in U.S. dollars to euros. Who knows, “the unexpected outbreak,” the second half of the euro have fallen sharply, the rate of depreciation of the renminbi is much faster than the dollar, so has relied on exports to Europe of their reputation. Pfister, chairman of Zhejiang Garment Co., Ltd.

Cai Huan same day full of worry: since July 15 euro fell against the dollar since the time just a month or depreciation of the euro more than 20%, export-oriented enterprises great pressure, the European importers know what to do. “The euro is so big importers in Europe generally hold two attitudes: First, continue to wait and see, as long as it means a loss of orders, importers of Chinese enterprises began not to order. The second is to continue to delay payment, even if the contract signed good and has been the arrival of European merchants have expressed to drag a period of time, such as the euro’s appreciation of the re-payment. “Cai days Huan said that although the State raised the proportion of textile and garment export tax rebate, but the exchange rate volatility, export enterprises still quite helpless.

Exchange rate fluctuations in the dense fog conditions, with what a good monetary settlement? Wenzhou Song of Bank of China Deputy Governor Hu Taiwan branch of a word that what is difficult to avoid the currency clearing corporations and individuals subject to exchange rate losses, it is important to preserve and increase the use of certain hedging instruments, try to control exchange rate risk tolerance range. The banks have now introduced a “foreign exchange options Bao” and “euro forward exchange settlement and sales” are a good hedge against inflation hedging instruments.

Members of the public may wish to hand a euro settlement

Is not only worried about the export business, a lot of people on hand with the euro also confused. People are still more than 10,000 euros Mr. Liu did not do foreign exchange, given the volatility of the exchange rate to his opponents head held very concerned about the fate of the euro, I do not know what to do. Agricultural Bank of China Wenzhou Branch

Exchange Management Center Ye Lehua that idle hands are the euro investors to buy financial products through the reduction of exchange rate losses. Ensure the best design choice, the investment target is relatively simple, short-term investment period of months or so products. However, from past experience, some banks introduced foreign currency financial products linked to design will be taken, or related derivative products, in the context of the subprime crisis, greater risk of these investments are hidden. The recent trend to see more than 3 months, the yen is the strongest currency, the yuan and the dollar is the currency after the Japanese yen. Mr. Liu holds the hands of the euro and other currencies for the time being as no other purposes, “can withstand a loss in the case, or the proposed settlement as early as possible, or part of the settlement, and replaced the yuan to say.” Income may not keep the euro and the exchange rate losses, rather into RMB deposits.