Shishi Export Benefit from the International Settlement of Balances in RMB
Source: CTEI Date: 2009-04-17
The Chinese State Council decided to introduce the pilot program for using yuan in cross-border trade settlements in mainland five cities such as Shanghai, Shenzhen, Guangzhou, Zhuhai and Dongguan. The foreign trade industry of Shishi expressed their favor to this policy and hope it could benefit their import and export business.
Once the cross-border trade settlements in RMB start, the contract could be signed in RMB quotation directly. The foreign importer could also pay the supplier in RMB. The fluctuation of USD has less impact on the stable of bilateral trade then.
The fluctuation of foreign exchage rate has negative effect on the income of export-oriented economy of Shishi. The export values of seven industries in Shishi have broken the line of 100 million yuan. Of which, garment export ranks first with 4.4 billlion yuan per year.
The recent years‘ RMB appreciation, in particilar, the global financial crisis, Shishi foreign trade companies witness reduction of traditional orders from overseas, because of the depreciation of Euro, Pound, South-Korean Won, Ruble and AUD. The foreign exchange rate risk became the No 1. trouble for the foreign trade industry of Shishi.
