Depreciation Of The RMB Let Foreign Textile Enterprises Reduce Costs

Some experts pointed out that the recent depreciation of the renminbi is more market behavior; interest rate decline is dominated by domestic factors, liquidity easing is more phased phenomenon, and the follow-up will still be tight and difficult to loose. In the second half of 2013, foreign capital began to run away, and for a while, domestic money began to tighten. In January of this year, hot money continued to flow into China, resulting in strong expectations for RMB appreciation and stronger expectations for RMB appreciation by foreign institutions.

Ma Zili, a researcher at the Academy of Social Sciences, believes that in the long run, the trend of RMB appreciation still exists, and that the appreciation of RMB too fast is not conducive to China's economy. Now, in response to the inflow of hot money, the central bank has been forced to adopt a two-way fluctuating exchange rate trend, which will change the expected market consensus, which has played a certain role in blocking the hot money inflow.

On the other hand, as China begins to replace the United States as the first trading power, the main currencies of the future world will be the three parts of the US dollar, the euro and the renminbi. The competition between the RMB and the US dollar and other major currencies is inevitable. The RMB is still in the stage of currency swap and volume accumulation with some countries. At the present stage, the short term appreciation or depreciation can not explain the problem. Only after more countries recognize their international status, can the internationalization of RMB finally become apparent.

The other is the domestic market. economic growth Worries. Judging from the manufacturing industry, the investment in manufacturing industry has not been much increased, resulting in a relatively sluggish manufacturing industry. And some traditional industries, due to the compression of excess capacity, led to GDP growth continued to decline, which has a negative impact on the macroeconomic. With the decline of GDP growth rate, the role of market regulation is beginning to show. The cost of domestic traditional manufacturing industry is increasing, and the manufacturing industry is not optimistic. The depreciation of the RMB exchange rate is very beneficial to boost the manufacturing industry.

Although the depreciation of the renminbi did not immediately bring about a marked increase in export orders, it still reduced the pressure on export costs. This is a good news for textile and garment enterprises, and to a certain extent buffers the pressure of the labor cost rising this year.

Now that the external environment is changing rapidly, the role of quantitative easing monetary policy in the United States is still fermenting. The depreciation of the currencies of neighboring countries and the reduction of exchange rate this year are very beneficial to exports. However, for the difficulties encountered by textile exporting enterprises, it is difficult to completely curb the declining trend of exports only by relying on the devaluation effect of RMB.

Only a set of countries is introduced. fiscal policy It is possible to slow down the combination of monetary policy. Spin The speed of economic downturn helps enterprises to pass the cold winter. At present, the crux of the overall decline in the growth rate of textile and clothing exports is the decline in overseas demand. In the face of the global economic downturn, the depreciation of the RMB is difficult to reverse the status quo of the industry, but it has a certain effect on reducing the burden of export enterprises and enhancing competitiveness.