Home / Knowledge / News / Textiles / RMB appreciation negatively impacts Chinese textile sector
RMB appreciation negatively impacts Chinese textile sector
28
May '13
The exchange rate of the Chinese currency Renminbi (RMB) against the US dollar stood at 6.1904 yuan on May 22, which was the new high for the second consecutive day since the foreign exchange reform was carried out by the Chinese Government, according to the data from China Foreign Exchange Trade Centre.
 
Since the currency exchange reform in 2005, the Chinese textile and garment exports are being negatively impacted by RMB appreciation, as it eats into profit margin of entrepreneurs, according to experts.
 
They add that RMB appreciation also results in decline in procurement cost of raw materials, but it is not sufficient to compensate the decline in sales prices of finished products, when calculated in RMB.
 
They estimate that the operating profit of cotton textile industry declines by about 12 percent, when the RMB appreciates every one percent, while the profit of wool textile industry decreases by about 8 percent, and that of apparel industry by approximately 13 percent.
 

Fibre2fashion News Desk - China

Must ReadView All

Textiles | On 23rd Jan 2017

China’s cotton imports down 39% in 2016

China’s total cotton imports declined by 39.1 per cent to ...tons in...

Textiles | On 23rd Jan 2017

MagnaColours develops new sustainability standard

MagnaColours, manufacturer of printing inks and ink bases, discharge...

Courtesy: ZDHC

Textiles | On 23rd Jan 2017

ZDHC adds six new contributors for sustainability

Zero Discharge of Hazardous Chemicals (ZDHC) programme has added six...

Interviews View All

Smita Murarka
Amanté

‘There is huge demand in the Indian lingerie market for non-wired styles.’

Amit Jain
Shingora Textiles Ltd

‘In terms of fabric, the fastest growing category for us is a blend of...

Pinkesh Jain
Everflow Petrofils Ltd

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

Marcel Alberts
Eurofibers

Coating at a fibre level is a practice not usually seen in the...

Mark Paterson
Technical Absorbents Ltd

Mark Paterson, R&D manager of Technical Absorbents Ltd talks about Super...

Kai Poehler
Voith Paper GmbH & Co. KG

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

Wendell Rodricks
Wendell Rodricks

"We should not compare India and the West. There are things we do that...

Jay Ramrakhiani
Occasions Elegance Wear

It is believed that by early 19th century, Varanasi weavers had moved away ...

Mike Hoffman
Gildan Activewear SRL

Gildan Activewear, a manufacturer and marketer of branded clothing and...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


editorial@fibre2fashion.com

Letter To Editor






(Max. 8000 char.)

Search Companies





SEARCH
January 2017

January 2017

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

SUBSCRIBE


Browse Our Archives

GO


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