Home / Knowledge / News / Textiles / RMB revaluation deeply worries exporters

RMB revaluation deeply worries exporters

07
Jul '10
It is learnt that since the reform of formation mechanism of RMB exchange rate in July 2005, the Yuan has made small appreciation in the period till date.

This year, the central parity of exchange rate of the RMB against the US dollar has basically ranged between 6.826 to 6.828 Yuan.

On June 22, the second day after the resumption of the reform by the central bank, the central parity of RMB against the US dollar was 6.7980.

The industries being affected by the appreciation of the RMB include labor-intensive industries, such as home appliances, electrical, automotive, steel, textiles and clothing.

The industry estimates that textile and garment industry will face the biggest impact, 90 percent of the companies in the industry will be subject to significant impact, once the RMB revaluates.

Experts estimate that at least more than 25 million workers will face employment crisis in textile and garment industry.

According to industry sources, annual cumulative appreciation of the Yuan against the US dollar may range between 4 to 5 percent.

Export-oriented textile enterprises complain that it is not the right time for Yuan appreciation, the industry has not yet recovered from the financial crisis, export products will have no profit with Yuan appreciation again and they will have to increase product prices.

Experts estimate that China's export-oriented small and medium textile enterprises may become zero profit companies, if the RMB appreciates by more than 3 percent against the US dollar.

Fibre2fashion News Desk - China


Must ReadView All

Pic: Shutterstock

Textiles | On 4th Apr 2020

Textile-garment, retail sectors bear enduring pandemic

Extended store closures, many factories halting operations due to...

Pic: Kristi Blokhin / Shutterstock.com

Textiles | On 4th Apr 2020

World Bank Group launches 1st operations for COVID-19

The World Bank’s board of executive directors yesterday approved a...

Pic: Shutterstock

Apparel/Garments | On 4th Apr 2020

Haiti making masks to fight COVID-19 pandemic

To keep its textile industry afloat amid the economic shutdown...

Interviews View All

Subhashini Srinivasan, The S Studio

Subhashini Srinivasan
The S Studio

Ethnicwear market will see an upward trend if uniqueness and quality are...

Footwear industry, Head honchos

Footwear industry
Head honchos

Personalised and differentiated footwear is in high demand

Textile Industry, Head honchos

Textile Industry
Head honchos

Trade buzz: This could be a landmark budget

Madhu Sudhan Bhageria,

Madhu Sudhan Bhageria

Incorporated in August 1990, Filatex India Ltd manufactures manmade...

Abhishek Pachauri,

Abhishek Pachauri

Reckon Industries adapts latest systems for manufacturing from designing...

Farheen B Rahman & Priti Jain,

Farheen B Rahman & Priti Jain

Founded by business-designer duo <b>Priti Jain and Farheen Rahman</b>,...

Suresh Patel, Sidwin Fabric

Suresh Patel
Sidwin Fabric

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

Kazuaki Yazawa, Purdue University

Kazuaki Yazawa
Purdue University

Scientist <b>Kazuaki Yazawa</b> has developed thermoelectric semiconductor ...

Kevin Young & Tom Lucas, Web Industries

Kevin Young & Tom Lucas
Web Industries

Web Industries is a precision formatter of nonwoven materials used in baby ...

Amiben Shroff, Shrujan

Amiben Shroff
Shrujan

From its modest beginning in the late 1960s, Shrujan has grown into a...

Aditi Somani, Aditi Somani

Aditi Somani
Aditi Somani

Aditi Somani specialises in luxury fusion wear with international cuts and ...

Anjali Bhaskar, Samatvam

Anjali Bhaskar
Samatvam

Anjali Bhaskar has an experience of 12 years in the fashion industry. She...

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

Leave your Comments


March 2020

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


Advanced Search