Textile exporters optimistic at revaluation of yuan

26 Jul '05

2 min read

Stating that it will boost exports, the Bangladesh textile exporters have welcomed Chinese currency renminbi or Yuan's revalution against dollar adding the post MFA era will help industry overcome Chinese monopoly over the world trade.

Statistics show country's exports mainly hinge on textile reaching almost 75 percent of the total exports worth US $7.57 billion, last year.

It was feared that China's unstoppable run would harm the local exporters and drive them out of even their home markets as cheap Chinese textile goods started flooding Bangladesh.

Fazlul Haq, President, Bangladesh Knitwear Manufacturers and Exporters Association said, "Bangladeshi exports will be a bit cheaper in the international market after the yuan revaluation."

He added that there was lot to gain from the Chinese currency revaluation for Bangladesh, particulalrly for exports and jobs. Incidentally, the association Haq heads is the second largest exporter association from Bangladesh.

Export data released states that 9.5 percent, or $1.5 billion worth of garments were exported by the country last year in the first quarter.

But on the down side, country's biggest export sector - woven garments like jeans, dropped 5.6 percent making domestic producers wonder about US buyers buying lower cost Chinese goods after the elimination of textile quotas.

Exporters here were expecting more from China than mere two percent revaluation against the US dollar, but whatever that means, Bangladeshi exports will gain a slight price advantage in international markets which means a lot in the overseas markets, industry insiders.

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