The RMB exchange rate has continued to climb recently. According to data from China's foreign exchange trading Center, February 5, the renminbi's median exchange rate was 6.3019, down 134 points from the previous session. In the previous session, the RMB median exchange rate against the dollar was 6.2885, a record high since August 11, 2015.
Several happy several worries, as the renminbi rose, some foreign trade enterprises also ushered in the test of exchange rate risk. Li, the export business, because he did not do enough exchange rate risk management, the appreciation of the renminbi so that he lost heavy. Li said, "a few years ago the United States dollar is relatively strong, I have been in the United States dollar settlement, no settlement, but did not expect the renminbi to climb all the way." Now, because anxious to spend money, can only bite teeth settlement, direct loss is hundreds of thousands of, lose big. ”
Foreign exchange experts believe that the impact of RMB appreciation on the import and export industry is mainly not in the field of international competitiveness, but the financial management capacity of the challenge. Enterprises need to adapt to the new environment of two-way fluctuation of RMB exchange rate and improve their ability to manage exchange rate risk. For example, in the contract to add exchange rate restrictions, the euro quote, the use of currency derivatives, hedging and other "risk-averse toolbox", locking costs, control risk.
What are the reasons behind the continued strength of the renminbi against the dollar?
Wen Bin, chief researcher of Minsheng Bank of China, believes that the fundamental reason for RMB appreciation is that China's economy continues to be good. In stark contrast to the strength of the renminbi is the continued slump in the dollar. Although the Fed started raising interest rates last December, it still failed to stop the dollar index from falling, and the dollar index has fallen to three-year lows. "This round of appreciation of the renminbi, the big background is the lower dollar, the euro, yen, sterling and other major global currencies to the U.S. dollar appreciation, the renminbi is no exception." Financial analyst Andy Xiao said.
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