124According to report, Forced in the exchange rate pressure, the Yangtze River Delta has taken a number of export enterprises to increase the exchange rate exchange rate lock or contract provisions and other measures; number of export enterprises to increase imports to offset the positive impact of exchange rate appreciation. However, due to various conditions, one of the few companies to take such measures, on the whole difficult to grasp the future exchange rate changes, have affected business orders and break the contract in hand. Ningbo Municipal Bureau of Foreign Trade in the Director of Finance Zhang Qionghua interviewed said that the rapid appreciation of the RMB exchange rate and volatility of the forward rate lock has taken measures such as import and export business directly affected is relatively small. However, the export of Ningbo, the vast majority of smaller enterprises, the exchange rate risk has yet to take any action, cause its exposure to exchange rate risk is completely state. Zhang Qionghua proposal, companies can combine their own reality, through the adoption of bank hedging costs and benefits of the exchange rate locked, they can use the characteristics of exchange rate fluctuations during the day, seize the opportunity to purchase foreign exchange, foreign exchange, sales, credit exchange, collection and also part by contract included in the product cost of exchange risk factors included in the profit expected exchange rates, currency for settlement, the development of imports, increase the intensity of R & D and product upgrading to increase value-added products, etc. reduce the impact of exchange rate changes. nike dunks To avoid exchange rate risk, there are considerable number of enterprises enabled a variety of financial derivatives, such as the use of multi-currency balance sheet to transfer the exchange rate risk; appropriate use of foreign exchange forward trading, hedging and other means to lock the exchange rate risk; or through appropriate dollar loans, lower interest expenses and exchange differences losses. According to the Bank of China Ningbo Branch of data, in October signed the forward exchange settlement and sales business line amounted to 700 million U.S. dollars, accounting for January-October the bank of this business for 18% of the total. The above data show that increased volatility in the exchange rate situation Forced, Ningbo enterprises to use financial instruments to hedge foreign exchange risk awareness has been enhanced, especially in some companies are good at seizing the opportunity to exchange rate fluctuations, the ability to control the exchange rate risk has increased. However, due to the pressure of potential appreciation of the renminbi is still not small, many enterprises have realized that only financial instruments to hedge foreign exchange risk is far. "Almost every day we are packing the goods shipped, and the exchange rate is changing daily, locking the exchange rate is a good way, but not the best. If it fell, we still remain the same, that does not lose out . "clerk in the foreign trade import and export company based Wang told reporters.

123In the Yangtze River Delta area, which nearly led to appreciation of all the export enterprises are affected. Because the signing of a single earlier, according to the old exchange rate; cash on delivery, billing is based on the new exchange rate of RMB appreciation would mean shrinking profits. Textile and garment industry in particular, such as large business, profit is small, only rely on sales. If the exchange rate of 1% -2% shrink again, corporate profits are basically gone. Greater impact on SMEs "RMB appreciation on exports is definitely a negative impact, the most direct is the decline in profit margins." US-Jie International Trading Co., Ltd. Ningbo Li, general manager of a reporter in an interview with China Economic Times said. His company is now in order to keep the profit, usually with some other methods such as forward exchange settlement and sales, strengthen exchange earnings management, and reduce the foreign exchange collection time, also increase the exchange rate risk in terms of the contract, together with the client to take risks, and strengthened exchange rate risk management company sales training. "Of course, the ultimate solution must depend on the increased value-added products, improve production and management efficiency, and to develop diversified markets." wholesale sunglasses The export of consumer goods in a foreign trade company business manager Xu Xi Wen told our reporter, now the company received orders for more than a short single-based, and customers generally regardless of the exchange rate. "So, we had to leave room for ourselves, and quotations are in accordance with the 6.5 reported generally six months to 3 months control. This wait list to do, receipt, when the exchange rate may not come to this level to not lose. If courageous to in accordance with the 6.6 reported. She told reporters that they are smaller companies generally will not take the exchange rate and the like, such as locking, "financial derivatives", "only export a few millions or tens of millions of dollars in business to do that." "Factory production generally 1 month, and now the exchange rate changes too quickly, this time from 6.8 to 6.6 is less than a month time, so we can never keep up with the." Xu Xi Wen said. Because of the appreciation of the renminbi will not, offer improved, and lose some customers. Xu Xi Wen said: "The process is simple, low technology content, and more sensitive to price the product, may turn to Southeast Asia and other lower cost countries, but most will not order a half past one would turn, as a model involving the production of a product and other multi-channel program, not to say that you can turn turn. " Use of financial instruments to hedge foreign exchange risk

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