Home / Knowledge / News / Textiles / RMB devaluation to benefit Chinese textile industry
RMB devaluation to benefit Chinese textile industry
Dec '11
The devaluation of Renminbi (RMB) against the US dollar is likely to benefit Chinese textile and garment industry, according to a study.

Recently, the Chinese currency has been falling as the investors' hedging demand to buy dollar is strong, which is creating pressure on the yuan. Currently, the central parity is 6.3618 yuan against one US dollar, while the figure was 6.3319 approximately a month ago.

The study says continued slowdown of Chinese domestic growth, including the RMB devaluation, will help stabilize export-oriented enterprises in the country, including textile and garments.

It estimates that every one percent appreciation of RMB will lead to a decline of 2-6 percent in sales profits of the textile industry.

At present, cotton textiles, woolen textiles and apparels, each have an export dependence of 20 percent, 27 percent and 60 percent, respectively. Currently, the average net profit of the Chinese textile industry is only 3-4 percent.

Moreover, most enterprises engaged in China's textile and garment industry are medium and small enterprises (SMEs). Hence, in the prevailing circumstances of difficult financing for SMEs, the textile industry will be more benefited from RMB devaluation, the study adds.

Fibre2fashion News Desk - China

Must ReadView All

Textiles | On 20th Jan 2017

TEA expects budget to upscale textile skill industry

The Tiruppur Exporters’ Association (TEA) has requested the Central...

Textiles | On 20th Jan 2017

Bangladesh could earn $60 billion in exports by 2021

Bangladesh is expected to earn over $60 billion in exports by the...

Courtesy: PIB

Textiles | On 20th Jan 2017

Govt to help Tangaliya weavers purchase looms: Irani

Government of India will facilitate Tangaliya weavers in purchase of...

Interviews View All

Pinkesh Jain
Everflow Petrofils Ltd

‘An innovative technology which India needs desperately is the...

Dharmendra Shah
Ozone PB Spintex Limited

‘We have made huge investments to ensure quality yarn production.’

Karel Williams
Dow Microbial Control

'Silvadur is most rapidly adopted in areas where hygiene-conscious and...

Kai Poehler
Voith Paper GmbH & Co. KG

The glass mat industry is growing by five to eight per cent annually. Kai...

Suresh Patel
Sidwin Fabric

Sidwin Fabric is a manufacturer and exporter of polypropylene textiles and ...

Eric Scholler

The Indian market has huge potential in technical textiles, and by far,...

Ritu Kumar
Label Ritu Kumar

‘Classics will return’ "There are a lot of people wearing western clothes ...

Karan Arora
Karan Arora

Bridal couture created with rich Indian heritage, exquisite craftsmanship...

Judy Frater
Somaiya Kala Vidya

Among the many honours showered on Frater, including Fulbright and Ford...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


Letter To Editor

(Max. 8000 char.)

Search Companies

January 2017

January 2017

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.


Browse Our Archives


Subscribe today and get the latest News update in your mail box.
Advanced Search