Lions Export Is Suffering From The Changing International Exchange Rate.

Shishi export enterprises were told that the second batch of cross border trade RMB settlement pilot increased the news of 14 provinces and cities such as Fujian. It was filled with joy and encouragement. For many years, the problem of frequent fluctuations in the exchange rate of Shishi export is expected to be solved.

Shishi's exports are suffering from the changing international exchange rate. The textile and garment pillar industries depend on foreign trade for about 50%. Since the reform, the exchange rate of the international market has become an unspeakable pain.

In recent years, not only the change of the US dollar to the RMB exchange rate has an impact on the export of enterprises, but also the negative impact of the US dollar on other currencies exchange rate changes.

At the beginning of January 2007, the US dollar against the RMB decreased from 1 to 7.8, from June to 1 to 6.8 in 2008. The RMB continued to rise against the US dollar, while Shishi enterprises all took the US dollar as the international settlement currency. As a result, the loss of the exchange rate almost exceeded the commodity profit. The more the export, the bigger the loss.

There are orders but can not be done. This is something that Shishi enterprises had never expected before.

The first to take action is the clothing market merchants, foreigners want goods to be settled in Renminbi, otherwise everything will be avoided.

This forced the purchase of spot foreign customers in Shishi market, which completely changed the habit of settling in US dollars over the past 20 years.

The international financial turmoil has brought down the global economy. Many countries have depreciated against the US dollar in their currencies.

During this period, the RMB remained stable for a long time against the US dollar.

But again, the export list of Shishi enterprise is gone.

Shishi one shoe company has successfully pferred the market to CIS countries because of EU anti-dumping. By the end of 2008, ruble had nearly half depreciated against the US dollar at the beginning of 2009. If Russian customers exchanged rubles for us dollars to buy stone lions, they could only buy one shoe before buying 1 pairs of shoes.

The order disappeared, and Shishi shoemaking went out all night.

Today, the US dollar has fallen to the lowest point of 1.22 against the euro, which is about 20% lower than the euro value of 1.5 at the end of last year.

As the international practice is settled in US dollars, Shishi enterprises find that the US dollar (RMB) has depreciated, and the export products of Shishi have no money to make or lose. There is no profit to do business, but the national currency of the exporting country of Shishi products has depreciated, the order has not come, no one wants to do business, and the exchange rate changes are international reasons, which are not related to the internal management factors of Shishi enterprises. Based on the above reasons, under the background of the deterioration of the international exchange rate, whatever the enterprise struggles, everything seems to be in vain.

The settlement of RMB cross-border trade is the dawn of hope for Shishi export-oriented enterprises. Following the pilot of 4 cities in Shanghai and Guangdong last year, second provinces and 14 provinces and cities were added to the pilot project this year. The pilot settlement of overseas areas expanded from Hongkong and Macao and ASEAN to all countries and regions. Fujian has been released to all enterprises with foreign trade qualification.

The direct settlement of RMB can help Shishi enterprises avoid the trade risk caused by exchange rate fluctuations, and it is undoubtedly a great benefit for Shishi enterprises, especially Shishi's small enterprises.