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    RMB Appreciation Has Swallowed Half Profit &Nbsp; Anhui Export Textile Enterprises Suffer The Biggest Impact On Profit Loss.

    2011/5/3 9:43:00 40

    RMB Export Textile Enterprises Anhui

    In April 29th,

    RMB

    The central parity of the US dollar against the US dollar was 6.4990 yuan against the yuan, up 61 basis points from the previous trading day, breaking through the 6.5 pass and making it a new high since the reform of the foreign exchange rate reached 1.

    Yesterday, the exchange rate of RMB against the US dollar remained below 6.5.

    Reporters learned yesterday that the pace of RMB appreciation is accelerating.

    Anhui

    The impact of the export enterprises is very large. Some enterprises in Anhui Province say that RMB appreciation has resulted in half loss of profits.


      

    Exit

    The list is "hot potato".


    "There are many lists this year, but I dare not pick them up."

    Mr. Yang has been doing ceramic export business for six or seven years. He just joined the spring fair and returned to Hefei earlier.

    "In less than half a year, the renminbi has appreciated by 2%, and profits have also lost more than half."


    Since April this year, the central parity of RMB against the US dollar has broken through 6.55, 6.54, 6.53, 6.52, 6.51, 6.506 and 6.5 points. Since June 19th, when the yuan was reunited with the US dollar, the RMB has appreciated 4.96% against the US dollar in more than 10 months.

    With manufacturing materials and labor prices rising, manufacturing export enterprises in our province have been under great pressure.


    Mr. Yang said, "like we do trade, the gross profit is generally in 5%~6%, but after the Spring Festival, in less than three months, the appreciation of the RMB has at least swallowed the profit of 2%~3%."


    "For the export enterprises in Anhui, the textile industry is the most affected."

    Mr. Wu, who makes clothing exports to the provincial capital, told reporters that "if the renminbi continues to appreciate like this, some factories will be closed down in the second half of the year."


    Difficulties facing domestic sales


    The accelerated appreciation of the renminbi, coupled with the rising price of raw materials and labor, has led many export enterprises in Anhui to face the dilemma of "no money to earn".

    During the interview, reporters found that at present, some export enterprises in our province began to sell to domestic market, but faced with many difficulties.


    "Now that export competition is so fierce, we dare not raise the price arbitrarily."

    Mr. Yang reluctantly said that from past experience, foreign buyers could accept less than 50% of the increase.


    "Some of my cooperative factories now have plans to turn to domestic sales, but they are faced with many difficulties."

    Zhang Bao, CEO of Hefei Zhiyuan planning organization, said that many export enterprises in our province, due to long-term attention to import and export trade, lack of domestic sales personnel and experience, it is difficult to establish a mature sales network, and the establishment of domestic sales network also requires a large amount of capital input.

    He suggested that relevant departments should introduce relevant supporting policies to encourage exports to domestic sales as soon as possible.

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