RMB To Promote Fifth Payment Currencies Favorable To China'S Foreign Trade Enterprises

The Global Telecommunications Union (SWIFT) released the report that in December 2014, the yuan had replaced the Canadian dollar and the Australian dollar to become the fifth most commonly used currency payment currencies in the world. The market share reached a record 2.17%. Following the US dollar, euro, pound and yen, the internationalization process of RMB gradually accelerated, and the transition from emerging currencies to commonly used payment currencies was expected to enter the basket of currencies of the international monetary fund special drawing rights. This will play an active role in China's foreign trade enterprises in procurement, production and marketing, and promote the development of China's foreign trade.

The internationalization of RMB helps to avoid exchange rate risk: exchange rate changes directly affect the interests of foreign trade enterprises. The US dollar market and the euro market are important positions for China's foreign trade and import and export. In 2014, the US economy grew faster and the RMB depreciated by 2.5%. However, the depreciation rate of the euro was even greater, and the appreciation of the renminbi relative to the euro has shrunk directly.

In addition, in 2014, the RMB will continue to depreciate to some extent in the year of 2015. If the euro area continues to fail, it will have a negative impact on China's exports to the European market. along with Globalization With the acceleration of the process, the exchange rate has different trends every day. It is extremely difficult for the RMB to maintain such a change. For foreign trade enterprises, it is very beneficial for China to push forward RMB settlement in the world and avoid exchange rate risk as soon as possible.

RMB settlement can also reduce the cost of settlement and promote the export of enterprises: in renminbi settlement, enterprises save the cost of exchange, reduce the link of settlement, eliminate the cost of exchange and foreign exchange derivatives transaction, and accelerate the operation speed of enterprise funds; moreover, when negotiating transactions, they will directly lock in the price of RMB and reduce the pricing cost brought about by the change of exchange rate, such as when the contract is concluded, the letter of credit indicates that the payment is made in US dollars, and because of the fluctuation of exchange rate, Foreign businessman The request to change the payment to the euro will result in a change in the cost of the letter of credit.

　　 RMB settlement It has great impact on long term orders and small profits products: from the signing of contracts to the actual performance, the longer the time span is, the greater the exchange rate risk is. There are two reasons for the long performance of contracts. One is that the production cycle of mechanical products is relatively long, and the other is long term and multi batch orders, especially those with long-term cooperative relations. On the other hand, because of the low profit margins, some of the products with lower added value may break through breakeven point, such as domestic labor intensive textile products, while for the products with higher profit margins, small changes in exchange rate will not result in a loss.

In 2014, the US dollar settlement still accounts for more than 50% of the global settlement, and RMB internationalization still has a long way to go. Foreign trade enterprises should set up awareness of exchange rate risk prevention. In view of the international economic background of 2015, when negotiating with foreign businessmen, we should correctly select the currency of valuation, and try to quote the US dollar price or RMB price, and the price of the euro can be negotiated to let the client bear the loss of exchange rate.