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The Renminbi Will Not Always Be Devalued, And Overseas Investment Will Not Change.

2016/1/10 16:23:00 49

RMBDevaluationOverseas Investment

After the depreciation of RMB, the overseas investment strategy of enterprises is different from that of frequent importing and exporting enterprises. Most enterprises choose overseas investment one or several times. Because the investment time is controllable, enterprises can rationally analyze and predict the foreign exchange market, and then choose a relatively suitable node for investment.

In the interview, the reporter learned that in the past few years, the RMB was on the path of appreciation. In the process of trading with foreign businessmen, large scale export enterprises adopted the financial settlement method of locking exchange rate to avoid possible losses.

"If a company signed a bank settlement rate with a bank 6.35 a year ago, it would not enjoy the benefits that the exchange rate exceeded 6.5 in these days."

Apollo, general manager of Zhejiang Motorcycle Manufacturing Co., Ltd. told reporters that under the trend of RMB devaluation, many enterprises around the country had already begun to change this settlement mode, instead of the mode of instant settlement.

Then, how should the importers respond? "Our LED chips and other raw materials need to be processed.

Overseas imports

We expect to see the possibility of RMB depreciation in the future, and we should adopt an appropriate pre stocking mode for these imported raw materials so as to avoid excessive losses.

Pan Junbo told reporters.

In this regard, Professor Huang Yanjun, School of economics, Zhejiang University suggests that, with the acceleration of the internationalization of RMB, it is possible for importers to adopt RMB settlement as far as possible when they enter the ocean trade. One can avoid the risk brought by the possibility of depreciation, and the two is more conducive to the clarity of enterprise financial accounting and speed up the operation of enterprise funds.

Besides,

RMB

Depreciation will also have an impact on overseas investment projects of enterprises.

At present, with the upgrading of production factors such as labor cost in domestic manufacturing industry, the pfer of traditional labor-intensive industries to Southeast Asia has gradually become a trend.

In particular, the Zhejiang businessmen, who dare to go out, take advantage of the national strategy of "one belt, one road" and so on.

The Longjiang Industrial Park, which is located in Vietnam, is the state-level foreign economic and trade cooperation zone led by Zhejiang businessmen. At present, 35 enterprises have entered the park, and the annual output value of the park has reached US $3 billion.

"In most cases, foreign investment is indeed settled in US dollars, but in the short term, we have not yet seen the change in the willingness to invest in the renminbi due to the depreciation of the renminbi."

Weng Mingzhao, chairman of Longjiang Industrial Park, told reporters.

"I don't think the renminbi will continue to depreciate, but even if it continues to depreciate, it will not affect the enthusiasm of enterprises to set up factories overseas."

Huang Yanjun analyzed the enterprise

Invest and build factories

There will be a profit return process. Even if the RMB continues to depreciate, the profits earned by the overseas branch will be more valuable when it is exchanged for RMB from the US dollar, so as to offset the loss caused by the depreciation of the RMB during the investment.

From this perspective, Huang Yanjun believes that as long as overseas investment projects are expected to be profitable, devaluation is not necessarily a bad thing for overseas investment enterprises.


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