Survey in the Yangtze River Delta: *** “Ten Lian Yang” textile companies that are not in disorder are more worried about rising costs

In the first trading day of 2011, the inter-bank market exchange rate of *** 215 against the US dollar was reported to be 6.6215, and the exchange rate of *** rose for 10 consecutive days, which was the highest since the exchange rate reform in July 2005.

However, compared with the sharp appreciation of *** in September and October of last year, this time faced with the “Ten Lian Yang” market, Yu Cheng’s more than 10,000 export companies seem to have calmed down a lot. In fact, at the moment, companies are concerned not only with the impact of exchange rate fluctuations.

Take the initiative and lock in the forward exchange rate. "According to the spot exchange rate, in 10 days, the 0.6% volatility in the exchange rate will suddenly bring a $12,000 loss to the $2 million list. But fortunately, we At the beginning of the order, the forward exchange rate has been locked. At present, exchange rate fluctuations are still expected.” Xu Zhe, general manager of Ningbo Textiles Import & Export Co., Ltd., has a bit of calm in his new tone.

The reporter learned that the appreciation rate of *** reached 3.01% last year, especially after the second exchange reform in June last year, the appreciation rate further accelerated, and the value-added of some products was low, and enterprises with profit margins below 5% have been difficult to sustain.

“In the course of this year, companies have gradually found out some laws, such as the important conferences between China and the United States. Before some international events, the appreciation of the *** regular meeting, etc. The company took the initiative to adopt a forward settlement method to lock in the exchange rate in advance to avoid risks.” Wu Chen, Bank of China’s Ningbo Branch’s fund business division claimed.

According to the latest statistical data from the Bureau of Foreign Trade and Economic Cooperation, as of November 2010, the city's total import and export volume reached US$75.047 billion, up 38.4% year-on-year, of which exports were US$47.284 billion, up 36.8% year-on-year. Under multiple pressures, the city’s import, export, export, and import growth ranks first in the city under separate planning.

Abandoning long-term orders and staring at the appreciation trend "Compared with the appreciation of Asian countries such as Japan, South Korea, and Thailand, the value of 3% a year was not large; but in the post-crisis era, Brazil will Took the lead in launching a disaster on China’s currency and the new Brazilian President Rosoff will visit China in April. At that time, she will raise concerns about the undervalued exchange rate and trade protectionism. Various factors reveal that the dollar will continue to Forced *** to continue to rise rapidly," said Mao Xinbin of the Foreign Economic and Trade Bureau of the city.

Experts believe that the current exchange rate has entered a strategic channel of appreciation, and the market has even seen the “expectation of a 5% appreciation in 2011 will reach 5%”.

Under the expectation that the appreciation of *** will become a long-term trend, in addition to adopting financial instruments to evade exchange rate risks, companies must also pay more attention to receiving orders.

“The cycle of textile production, transportation, and settlement is generally 2 to 3 months. We take 2 to 3 months as the acceptance cycle, and no more than 6 months. When we take orders, we must strictly calculate the cost and profit. Reduce possible losses,” said Ding Ying, general manager of Taiping Bird Import & Export Co., Ltd., admits.

With high costs, companies still worry about Xu Zhexin saying that the impact of the exchange rate problem can still be evaded and reduced through financial instruments. However, the problems faced by foreign trade companies are far more than these.

It is understood that in the previous stage, the prices of gold, bulk commodities, non-ferrous metals, petroleum and other minerals, raw materials, and energy rose greatly, which greatly lifted the cost of foreign economic and trade enterprises; inflation brought about price increases and increased foreign investment. The burden of life on the staff has created a new "labor shortage" to a certain extent. This "dilemma" between employing enterprises and non-resident staff is not formed in the short term, and it can be improved in a short period of time.

Analysts believe that the overcapacity in many industries has led to the inability of companies and society to access various types of funds, and they have been able to move into non-productive areas such as commodities, physical assets, and agricultural product circulation. This is despite the fact that local governments have taken a lot of control over price increases. Action, but under the conditions of ample liquidity in the market and the phenomenon of “not as good as the factory” in the early stage, the pressure caused by inflation on the cost of the company and the lives of employees is still difficult to fundamentally ease.