Euro Depreciate and how Chinese furniture building materials business turn the crisis to chance?(7/18/2010)

2010 January-May, the euro rate against the dollar for nearly 20%, only 7% in May on the decline, the birth of the euro has hit the longest one in 11 years down market. Currently, nearly one trillion U.S. dollars in assistance programs, although the European sovereign debt temporarily curb the rapid spread of the crisis, but the market's rebound in the euro exchange rate remained skeptical. If this trend continues, the euro will have a profound impact on the global economy, which "bring disaster" to China's furniture industry exports to the EU market.

U.S. dollar devaluation in 2008, when the furniture export business began to try to use euros. Originally settled in euros on reducing risk, reduce losses, but on Jan. 1, 2010, � 100,000 convertible 979,700 yuan, as of May 27 only exchange 839,400 yuan, 100,000 euros loss of 140.3 thousand yuan , the exchange differences for many enterprises suffer. As the renminbi is virtually pegged to the dollar, resulting in a passive appreciation of the yuan. Needless to say, the euro and the yuan revaluation is related to China's import and export business in the second half. .

Economic experts say: the impact of the euro is lagging behind, on the impact of Chinese exports to the EU companies being slow, but sooner or later to come. In the second half of the EU export growth will slow down. If the continuing strong euro, the price rise, the National Wujin purse, low consumption, long-term export situation can not be reversed, China's economic growth may slow down.

Depreciation of the euro, spread to many countries trade with the EU, companies how to trade in the currency depreciation due to minimize economic losses, this is the furniture export enterprises are most concerned about. Natural depreciation of the euro as the EU market, the market demand for auto-reduction, designed to avoid risks, reduce economic loss of profits, in order to survive temporary economic difficulties. Meanwhile, volatility in the global market economy, the occasion, the furniture industry not to "put their eggs in one basket," business risk should be divided in different market segments in order to achieve safe the face of financial turmoil. Ministry of Economic Affairs the economy, the export enterprises should actively try to expand in North America, Middle East and other emerging international markets, the risk of crises into opportunities for development.
(by China Leiyuan, 7/18/2010)