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

Apparel/Garments | On 26th Oct 2016

SGS develops 4C chemical management model for apparel

SGS, a leading inspection, auditing, certification, testing, and...

Textiles | On 26th Oct 2016

Whitehouse & URI Business Centre start RI textile network

Senator Sheldon Whitehouse and the University of Rhode Island...

Textiles | On 25th Oct 2016

Arvind to dilute 10% stake in brand business arm

Arvind Limited, one of India’s largest integrated textile and apparel ...

Interviews View All

Anshul Sood

‘Indian footwear market is nascent and largely a trend follower’

Yash Agarwal
Hitansh Online

Every market region has its own culture and trends

Abhimanyu Singh Rathore & Barbara Anna Kosiorek

‘Blending cultures is the true beauty of fashion, where one’s imagination...

Larry L Kinn
Suominen Corporation

Larry L Kinn, Senior Vice President - Operations Americas of Suominen...

Kerem Durdag
Biovation II LLC

Kerem Durdag, CEO, Biovation II LLC, provides an insight into future...

Steve Cole
Xerium Technologies

Steve Cole of Xerium Technologies discusses the industry. Xerium is the...

Judy Frater
Somaiya Kala Vidya

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

Tony Ward
Tony Ward

"You have to truly understand what your client wants, know her needs, what ...

Igor Chapurin

"Now we can see the Russian trend in international fashion. And Russian...

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

October 2016

October 2016

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


Browse Our Archives


Advanced Search