Low Euro Affects Wenzhou'S Shoes Exports

When the financial crisis broke out, the strength of the euro has won the favor of many international traders, and has also made some export shoes 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.

The industry said that 2 months ago, his company exported a number of textiles to Europe, but when it checked out, it suddenly discovered that the contract was quoted in euros, and the euro fell sharply in the near future. It quietly evaporated nearly 100 thousand yuan profit, and 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.

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.

According to statistics, the total value of Wenzhou's exports to the EU from 1 to June this year was $1 billion 712 million, an increase of 24% over the same period last year, and exports to the EU accounted for 27.5% of Wenzhou's total exports.

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 Wenzhou customs related people, from the first half of the foreign trade export data, Wenzhou export growth rate of the EU to the EU is 5.3 percentage points lower than the overall export growth of Wenzhou.