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The Tongxiang branch of the State Administration of Foreign Exchange handled the offshore resale business of the centralized collection of foreign exchange for Zhejiang Redsun Wool Textile Co Ltd and Zhejiang Gaohe Wool Technology Co Ltd on Sept 7.

It was the first new offshore international trade centralized collection and payment business in Zhejiang province.

Zhejiang Redsun Wool Textile Co Ltd and Zhejiang Gaohe Wool Technology Co Ltd are affiliated with Redsun Wool Group.

Wool stock of Redsun Wool Group. [Photo/cnjxol.com]

The two companies import raw materials from Australia. However, to improve the efficiency of capital use, when the group has sufficient stock in China and there is a difference in the price of wool at home and abroad, the Group will arrange for the wool originally planned for import at the front line to be directly resold abroad.

In the past, in the process of overseas resale, the two companies had to open multiple accounts according to the settlement currency to carry out foreign exchange, and there were exchange risks in foreign exchange transactions.

Now the two companies can carry out foreign exchange transactions all at once, which not only allows enterprise to obtain better exchange rate prices at the bank, but also reduces costs.