RMB Entered The "6.3" Era Of &Nbsp Against The US Dollar; Hebei Textile Exports Were Hit.

Since August, the renminbi has been against the US dollar. exchange rate Trotting all the way, breaking 6.44, 6.43, 6.42, and entering the "6.3" era. Today, the central parity rate of RMB against the US dollar is 6.3996. The change of RMB exchange rate is causing a great impact on Hebei's foreign trade. Profit margin Extremely low textile exports are the most heavily affected. It is urgent for the textile industry to speed up the adjustment of product mix.

Foreign trade enterprises are afraid to take orders.

How fast will the appreciation of the renminbi speed up? The statistics report of Hebei textile and clothing association in July showed that the RMB exchange rate rose to 1% against the US dollar, which would reduce the textile export profits of our province by 2% to 6%, and many foreign trade enterprises were afraid to take orders.

Xue Hui, deputy director of the office of the Provincial Textile Import and Export Corporation, said: "at present, their export orders for textiles are all settled in US dollars. The faster the appreciation of the RMB against the US dollar, the greater the loss will be when the export sales profit is converted into RMB. Moreover, the cost of cotton, spanportation and labor in the domestic market has been rising in recent years, while the price of foreign market orders has not correspondingly increased, resulting in a drop in and export of textile export profits. Some enterprises have even been in an awkward state of "zero profit" and "half loss".

"The textile industry is a small profit industry. The rise in the RMB exchange rate will inevitably weaken the price advantage of our textile exports, leading to further reduction in company profits." Hebei Rui Chun Spin Zhang Ruichun, chairman of the Company Limited, said: "the impact of short orders on the enterprise is still a little lighter. The long cycle orders have great impact on the export profits of enterprises, not even profits."

To avoid risks, we need to find a permanent solution.

To cope with the appreciation of the renminbi, Hebei Rui Chun Textile Co., Ltd. has recently received more short-term orders for quick export and quick repayment. When the exchange rate fluctuates frequently, the company also signs an exchange rate agreement with its customers, so that customers can also take part in the risk of exchange rate changes.

The export of textiles is in a predicament because of the fluctuation of RMB exchange rate, which once again exposes the low value-added and low profit margins of textile exports in our province. The head of the provincial textile and clothing association said that our province is a major textile export province, but exports are mainly primary products such as towels, blankets and clothing. It is better to draw a candle than to make a stop. Speeding up the adjustment of the export structure of textiles, phasing out the primary products such as cotton spinning and veil and increasing the top grade products with high profit margins are the long-term solutions for our provincial textile enterprises to avoid exchange rate risks.