For the RMB exchange rate against the US dollar to fall below 6.9, the specific impact on the foreign trade export industry is mainly reflected in the following aspects:
1. The exchange rate of RMB against the US dollar fell below 6.9, which is beneficial to foreign trade export and can improve the sales of foreign trade export industries.
The exchange rate of RMB against the US dollar may not be so professional for us ordinary people. The depreciation of the RMB against the US dollar means that 100 RMB can only buy fewer goods. On the contrary, for the dollar, goods imported from China can buy more goods from China.
When the price of goods is reduced, we will increase our desire to buy. For the foreign trade export industry, due to the depreciation of the RMB against the US dollar, their overseas customers will naturally increase their orders and buy more goods with the same money.
In addition, under the severe economic situation this year, the domestic real estate market was once depressed and consumption could not be started. Therefore, the foreign trade industry will stimulate export consumption to maintain stable economic growth and increase employment rate.
The impact of RMB exchange rate falling below 6.9 against the US dollar on the foreign trade industry is not entirely positive. If the RMB depreciates blindly, it may also exceed the cost line that enterprises can make profits. In addition, with the rising prices of raw materials for bulk commodities in the past two years, the superposition of rising shipping prices and rising labor costs has led to a sharp drop in orders, especially for small and medium-sized enterprises.
It can be seen that the exchange rate of RMB against the US dollar below 6.9 will promote the foreign trade export business, but at the same time, the problems faced by the foreign trade export industry, such as the price increase of imported materials, the increase of shipping prices and labor costs, and the reduction of orders, are also affecting the foreign trade export industry.
2. If the exchange rate of RMB against the US dollar falls below 6.9, it will affect the exchange income of foreign trade industry, especially when the exchange rate of RMB against the US dollar falls.
Foreign trade export companies will increase foreign currency or accounts receivable in the process of foreign trade, and the depreciation range can increase exchange gains and profits when settling foreign exchange. However, it should be noted that it is precisely because of the fluctuation of people's exchange rate against the US dollar, especially under the epidemic situation, the prolonged time difference between purchase and market price recovery will further aggravate the uncertainty of income. Therefore, we must make full use of financial instruments to reduce the impact of exchange rate fluctuations on foreign trade and export industries.
3. If the exchange rate of RMB against the US dollar falls below 6.9, the devaluation of other countries' currencies will also have an impact on China's foreign trade export industry.
The reduction of RMB exchange rate has enhanced the purchasing power of foreign residents, at the same time reduced the price of China's export products and promoted the export of a large number of domestic goods and services. Although the depreciation of the RMB against the US dollar means an increase in profits for exporting enterprises, we should also see that foreign trade exports are not only aimed at the United States.
Since the beginning of this year, compared with the US dollar, the New Zealand dollar has depreciated by 6. 12%, the euro by 6.83%, the pound by 8.7% and the yen by as much as 13.3%. The RMB exchange rate fell by 4.74%, and the decline was still relatively small. This also means that foreign trade enterprises may face exchange risk losses.
The devaluation of other countries' currencies means the appreciation of RMB against other foreign currencies, which is not conducive to the export of foreign trade industries to other countries.
It is extremely difficult for foreign trade enterprises to accurately judge the exchange rate trend. Therefore, foreign trade export-oriented enterprises can only reduce the negative impact of exchange rate fluctuations on their own industries by adhering to the principle of risk neutrality and rationally using financial instruments according to their own conditions.