Home >

Continued Depreciation Of The Euro Affects Wenzhou's Exports Of Shoes

2010/7/22 10:02:00 53

Ever since the Greek debt crisis broke out, it has been

Trader

The strong euro has begun to enter the path of devaluation, which has become the beginning of many nightmare habits of Euro settlement.

As Wenzhou's largest export destination, export orders for Wenzhou enterprises to the EU have begun to decrease in the past two months, and Wenzhou's export growth to the EU has been lower than that of Wenzhou's overall export growth.

The impact of the financial crisis has gradually subsided, many enterprises export orders have also come back a lot, but the footwear export business Lee is still unhappy.

2 months ago, his company exported a number of textiles to Europe. But when he checked out, he suddenly found that the contract was quoted in euros, and the euro fell sharply in the near future. It quietly evaporated nearly 100 thousand yuan profit. The expected order eventually became a break even business.

"Now we have a deep understanding of the true meaning of exchange rate risk."

Li jokes that before, he often heard about exchange rate risk, but he did not care about it. Most people were always concerned about the appreciation of the renminbi.

So this business has suffered a great deal.

As one of China's main export markets, the EU's trade status should not be underestimated.

EU has always been ranked first in Wenzhou's export market.

According to statistics, from 1 to June this year, Wenzhou was right.

European Union

The total export value was US $1 billion 712 million, an increase of 24% over the same period last year, and exports to the European Union accounted for 27.5% of Wenzhou's total exports.

stay

financial crisis

At the time of the outbreak, the strength of the euro has won the favor of many international traders, and has also made some export enterprises in Wenzhou accustomed to the euro settlement.

However, the euro, which has always been valued by Wenzhou enterprises, has entered the path of depreciation when Greece's debt problem is exposed.

The euro's exchange rate continued to decline against the yuan, and its value fell nearly 15% in the past six months.

The worst performance in all non US currencies.

Some major export enterprises in Wenzhou indicated that because some enterprises used the US dollar settlement, the direct depreciation of the euro continued to depreciate on their import and export trade was not great, but the export orders for the EU in 5 and June began to decrease this year.

According to the customs and Excise Department of Wenzhou customs, from the first half of the year's export data, Wenzhou's exports to the EU grew by 5.3 percentage points lower than that of Wenzhou's overall export growth.

According to the insiders, Wenzhou's exports to the EU are mainly low value-added traditional products, such as shoes, clothing, glasses and so on. European enterprises that need to import goods from China may lower prices or even reduce orders.

Export companies generally expressed concern that, if the euro continued to fluctuate, exports to Europe would just shrink.