Home / Knowledge / News / Textiles / RMB appreciation negatively impacts Chinese textile sector
RMB appreciation negatively impacts Chinese textile sector
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

Courtesy: Reliance Industries

Textiles | On 24th Apr 2017

Reliance’s FY17 revenue from petrochemicals up 12.2%

Increase in prices across polymers and polyester chain has...

Textiles | On 24th Apr 2017

India, Kazakhstan to increase cooperation in textiles

Indian and Kazakhstan are deliberating upon increasing cooperation in ...

Textiles | On 24th Apr 2017

GST reflects 'One nation, One aspiration' spirit: Modi

Prime Minister Narendra Modi has said that the Goods and Services Tax ...

Interviews View All

Poojaa Kumar Deepak

Zeven's performance sports apparel is designed for the Indian body type,...

Smith Vaghasia
Sanado India

Online remains the best destination for shopping

Abhimanyu Singh Rathore & Barbara Anna Kosiorek

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

Marcel Alberts

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

Marten Alkhagen
Swerea IVF AB

Marten Alkhagen, Senior Scientist - Nonwoven and Technical Textiles of...

Eric Scholler

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

Robert Brunner

Golfwear and menswear brand Devereux is set for greener pastures. Robert...

Pranav Mishra

Designers Pranav Mishra and Shyma Shetty’s Huemn is known for its...

Madhu Jain
Madhu Jain

She grew up in the walled city of Old Delhi, completed her studies, and...

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

April 2017

April 2017

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


Browse Our Archives


E-News Insight
Subscribe Today and Get the
Latest News Update in Your Mail Box.
Advanced Search