RMB Devaluation Drives Fabric Export Dividends

< p > recently, the RMB has depreciated. As of April 24th, the exchange rate of US dollar against RMB has dropped to 6.1589.

According to industry analysis, the continued depreciation of the RMB has obvious stimulative effect on the export volume of labor intensive enterprises such as textile fabrics with low profit margins.

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< p > according to a lot of foreign trade enterprises engaged in the textile and textile industry, after being restricted by < a href= "http://www.91se91.com/news/index_cj.asp" > foreign trade environment < /a > and cost pressure, business operation is very difficult, even to the edge of bankruptcy.

And the continuous depreciation of the RMB will make enterprises get some breathing space, in the European and American order calculation, the continuous depreciation of the RMB will bring 1%~2% profits for the enterprises.

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< p > in addition, there are also fabric enterprises. Although the depreciation of "a href=" http://www.91se91.com/news/index_cj.asp "RMB" /a "has not brought about a marked increase in export orders immediately, it still reduces the pressure on the cost of fabric export, which is a good news for enterprises, to a certain extent, buffering the business pressure brought by the rising cost of labor and other issues.

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Less than p days ago, many a href= "http://www.91se91.com/news/index_cj.asp" > foreign trade enterprises < /a > had already felt the export dividend brought about by the fluctuation of RMB exchange rate.

"In the past, the RMB has maintained a long-term appreciation trend, and the cost pressure of product export is very large. Only by choosing a price increase of 15%~20% will enterprises have profit.

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< p > now, the RMB has depreciated, and the quotation space of export orders has been more flexible, and the relative orders will be more, and profits will also rise a lot.

Mr. Li, who manages the fabric export in Keqiao Textile City, said that the continuous decline of the RMB against the US dollar is undoubtedly an exciting news for those who run small foreign trade enterprises like him. "Recently, the confidence of everyone doing foreign trade in the circle of friends has risen again, and the monthly export business earned more than tens of thousands of yuan compared with last year's two months."

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< p > however, some industry experts say that the dividend effect brought about by the depreciation of the RMB does not help solve the practical difficulties faced by the fabric exporters.

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At present, the export mode of domestic fabric enterprises is still too traditional. The mode of processing trade has not changed. With the increasing cost of labor, logistics, financing and many other aspects, the competitiveness of many enterprises is not high, and profits continue to decline. P

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< p > exchange rate fluctuations do not change substantially for the long term development of enterprises.

In order to become bigger and stronger, enterprises should enhance their efficiency from the aspects of management, innovation and brand. Only in this way can the core competitiveness of enterprises be increased and the profit margins of products can be improved.

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