Home / Knowledge / News / Textiles / Non-stop appreciation of RMB casts shadow
Non-stop appreciation of RMB casts shadow
Sep '10
The textile and apparel industry expects that export growth of China's textile and apparel industry, will slow down in the fourth quarter of this year, as RMB appreciation would create some negative impact on the export-oriented industry.

However, recovery trend in the textile and apparel industry will not change, due to strong domestic consumer demand.

The central parity of RMB against the US dollar rose further by 69 basis points to 6.7181 Yuan / dollar on September 16, which meant that, the RMB hit a new low for the fifth consecutive trading day, against the US dollar, since the exchange reforms in 2005.

The central parity of RMB against the US dollar has surged 636 basis points since September 10. Many agencies predict that appreciation trend of the Renminbi is expected to continue.

RMB appreciation would cause some negative impact on China's exports, while the textile and garment industry, as an industry with high dependence on foreign trade, is more sensitive to changes in exchange rate.

Especially a lot of small and medium textile enterprises in the industry have less tolerance to the appreciation due to lack of bargaining power, so exports of the whole industry will be adversely affected by the appreciation.

The textile industry estimates that for every 1 percent appreciation of Renminbi, the net profit margins of the sector will decline by 1 percent and if the RMB continues to appreciate, the profit margins of the textile industry will be wiped out, since it already works on low profit margins.

Fibre2fashion News Desk - China

Must ReadView All

Textiles | On 20th Oct 2016

Indian polyester market demand grows 14% in Q2 FY17: RIL

The Indian polyester market witnessed a demand growth of 14 per cent...

Fashion | On 20th Oct 2016

Replay to explore new markets in 2017

Replay, the iconic Germany based denim brand, is planning to get into ...

Textiles | On 20th Oct 2016

Pakistan proposes Rs200 bn for textile sector revival

A bailout package of Rs 200 billion has been proposed by the Pakistan ...

Interviews View All

Smita Murarka

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

Anvita Mehra
Confidential Couture

‘It is going to take some time for Indian buyers to get accustomed to...

Claudia Kersten
Global Organic Textile Standard

‘GOTS is a very efficient supply chain management tool, especially for...

Ashok Desai
Bombay Textile Research Association

Bombay Textile Research Association (BTRA) is a leading name in textile...

Giorgio Mantovani
Corman S.p.A

Giorgio Mantovani, MD of Corman, with a presence in both Milano and New...

Eamonn Tighe
Nature Works LLC

Eamonn Tighe, Fibres and Nonwovens - Business Development Manager of...

Jay Ramrakhiani
Occasions Elegance Wear

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

Silvia Venturini Fendi
Fendi s.r.l

"Yes, my confidence and positive attitude are my strengths and should be...

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


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