Bags / Shoes & Accessories

Recently, with the rapid depreciation of the euro and the exchange rate against the US dollar falling below the 1:1 mark, foreign trade companies on both ends of the Eurasian continent have felt a lot of shock.

"Recently, it is the summer off-season, and the original orders are already shrinking. Recently, the euro has depreciated. European customers are cautious in placing orders, and the order decline trend is increasing." Xiao Wendian, the person in charge of Dongguan Yinhui Toys, said.

As a market subject most directly affected by exchange rate changes, Dongguan's foreign trade enterprises have experienced many uncertainties. Heads of several enterprises said that due to multiple factors such as the depreciation of the euro and the weak economic growth in Europe, the number of foreign trade orders of enterprises has dropped significantly recently.

"Stabilizing orders" has become the primary challenge for foreign trade companies.

The depreciation of the euro affects the orders of foreign trade companies

"The number of export orders to Europe has declined this year. The important reason is that the international situation is turbulent, the consumer market is weak, and the ability of customers to place orders is not strong. Overall, orders have been reduced a bit since May and June." Guangdong Yuguang Import and Export Group Tan Yizhu, head of the company, said.

The person in charge of a furniture company in Dongguan said that the current foreign trade business of the company is basically settled in US dollars. Now that the euro has depreciated against the US dollar, it means that customers have to spend more for each order, so they will naturally be more cautious. is unfavorable.

As a leading toy company in Dongguan, Longchang Toys also showed signs of decreasing overseas orders this year. Liang Zhongming, general manager of Longchang Toys, told reporters from Southern Finance and Economics that the European and American markets are affected by inflation, trade expectations have weakened, and spending power has declined. Longchang Toys' orders from Europe and the United States have declined recently.

During interviews, many European and Chinese businessmen said that they had personally experienced the "cold current" brought about by the devaluation of the euro. "It can be said that the loss is huge, and the Chinese businessmen are trying to get out of the predicament." On the evening of the 13th Beijing time, Jin Shaojie, president of the French Chinese Garment Chamber of Commerce, said.

Lin Maofeng, president of the Milan-Zhejiang Overseas Chinese Merchants Association, also revealed that in the context of the devaluation of the euro, some Chinese businessmen engaged in international trade have changed their purchases back to their countries. "There are even some Chinese businessmen, whose goods are still on their way, and see the euro falling, and they urgently refund the order." Lin Maofeng said.

The euro may continue to depreciate

Agence France-Presse said on the 18th, affected by high inflation and economic downturn, the European Central Bank this week will announce the first interest rate hike since 2011. Analysts at Germany’s Berenberg Bank said in a recent report that “the euro-dollar exchange rate is in free fall and there is no bottom in sight.” Analysts said market participants’ price targets for the euro exchange rate range from 0.98 to 0.90. .

The market's expectation that the euro will continue to fall also means that domestic and foreign trade companies still need to prepare for exchange rate changes and reduced orders.