RMB Appreciation Will Make My Wallet Even More Shrunken.

Last year, the unemployment rate in the United States reached two digits. It was in the early 80s of last century, when there was a hot film "Red Dawn", which tells the story of the failure of the Soviet invasion of Colorado, reflecting the economic insecurity of the Americans.

With the United States

However, with the appreciation of the renminbi again and again, and this trend seems to have not stopped, Chinese people are also feeling a sense of tension and pressure.

Average person

Will appreciation give us more money?

It's just a currency illusion.

Story

"I can't seem to feel the impact of the exchange rate, even though experts are talking about exchange rates, and even the leaders of the world have appealed abroad."

Zhou Yanyong of Zhengzhou said so.

"If you are in a relatively closed economic environment, if you do not have pnational economic contacts, you may not feel the impact," said Chen Jun, an associate professor at Henan University of Economics and Law's School of international economics and trade yesterday.

But the actual impact on us, the most obvious example: you went to the United States to travel, study and so on.

Extension

According to common sense of finance, the appreciation of the renminbi may mean that the money in your wallet is more valuable, but in fact, if you do not intend to exchange and trade with foreign currencies, your wallet will not be bulged because of the rising exchange rate.

Prices only exist in pactions, if you do not plan to convert into dollars, buy the United States.

Moreover, the current domestic market, prices continue to rise, your "Renminbi wallet" will not only bulge up, but also more shrunken.

SOHO family of foreign trade

"I do not make a list now.

I wait

Story

Two years ago, Li Qingwei resigned from a textile and foreign trade company and began to make foreign trade, the standard SOHO family at home.

Yesterday, when I received a phone call from the reporter, Li Qingwei said "ha ha" and said, "I do not make a list now. When I wait for the renminbi to go up, I will make the list again. It will be safer then."

Extension

Li Qingwei has been concerned about the change of exchange rate. He said: the United States is desperately printing money and pferring to domestic crisis, resulting in the rise of international commodity futures. Gold, copper, tin, cotton and so on are all caused by the depreciation of the US dollar.

Li Qingwei made textile and clothing exports, paying special attention to cotton prices: in October 8th, the domestic cotton spot price of 328 spot reached 22710 yuan per ton, a record high.

"The cost of the enterprise will definitely increase, the price of the factory will be low, and the factory will not like it, but if we raise the price to the foreign customers, the foreign customers will not be able to accept it."

Li Qingwei said, "I have had several contact with American customers this year, and the price is a problem.

Customers are basically unable to accept 10% of the gains. "

Export agent

"When RMB is settled, it becomes more and more difficult to reduce Renminbi."

Story

Li Ying, chairman of Henan silk East import and Export Co., Ltd. is having a meeting at the time of a telephone interview. When he heard about the topic of exchange rate, he still accepted the interview and introduced the situation of foreign trade exporters under the fluctuation of exchange rate.

"The most realistic and direct impact on the factory that makes the bill is undoubtedly the reduction of the renminbi and the percentage of the exchange rate appreciation when we settle the foreign exchange, and the percentage of our losses."

Li Ying said, "for export enterprises, the list was received a few months ago, most of them were US dollar prices. Then, after delivery in four or five months, it is impossible to see RMB appreciation and depreciation of the US dollar in a few months."

{page_break}

Extension

In fact, Henan silk import and Export Corporation does not usually sign contracts and trade with foreign merchants directly, but acts as an import and export agent to collect agency fees from domestic enterprises, but the agency fee is also based on the profits of the agents. If the interests of the exporters are damaged, the agents will also lose.

Li Ying said: "our textile and garment enterprises are all small profits. 3%~4%'s appearance, you think, the appreciation of RMB exceeds 2%, what does this mean?" so Li Ying often heard the export enterprises complain: "it's becoming more and more difficult."

Costume Association

"Export profit is only 5%~8%

Put more eyes on the domestic market. "

Story

Qin Zicheng, President of Zhengzhou Garment Association, said: "our clothing exports here in Zhengzhou have been very few, most of which are domestic sales, and domestic profits are 10% overall, while export sales may be at 5%~8%, and profits are very thin."

Li Feng, a foreign trade clerk of a foreign trade company in Luoyang, has a direct understanding of the appreciation of the renminbi.

He quoted that every quotation would be based on the cost accounting of the factory plus the profit of 5%~8%, and then consider the RMB rising factor and convert it into US dollar quotations to the foreign party. In that case, the increase in factory wages and the increase of raw materials and processing costs led to an increase in factory production, and the exchange rate rose to make the price higher after converting into US dollars.

"Foreign importers are increasingly reluctant to accept our quotations," he said.

For these export enterprises, if the renminbi appreciates again and again, the pressure will definitely increase further.

Extension

Li Gang, executive director of Henan garment industry association, revealed that according to his understanding, the export price of clothing has also gone up. For example, a pair of trousers that used to be 10 yuan may now be 16 yuan.

He said: "there is obviously a factor in the rise of exchange rates, as well as factors such as wages, prices and electricity prices."

Because the most important part of Henan's textile and clothing is domestic sales, whether it is Qin Zicheng or Li Gang, it seems that they are more concerned about the domestic market.

Li Gang said: "at present, we should focus more on the pfer of domestic industries."