The RMB Devaluation Is Mixed: Textile And Garment Export Enterprises Are "Stuck".

The unilateral appreciation of the renminbi has caused the export enterprises to complain incessantly. Now, the RMB has suddenly depreciated sharply.

Can companies relax? The result may not be so optimistic.

"Now some customers have asked us for a price, asking us to lower the price of our export products."

Run a family in Guangdong

Zhang Shunying, an exporters, said.

It is really a blessing. The small and medium-sized export enterprises lacking the bargaining power have been able to easily devalue the renminbi and face the demand of the customers.

Not only that, the bargaining power of large export enterprises is not lacking, but because of the long-term implementation of hedging before hedging, there is still no taste for devaluation.

What worries the exporters is that while the renminbi is depreciating, emerging market currencies such as Malaysia are also falling sharply.

It also suffered heavy losses and many of its imports came from China.

Mixed feelings

China foreign exchange trading center data in August 25th showed that the central parity of RMB against the US dollar was 6.3987.

In the past two weeks, the RMB has depreciated by 4.62% against the US dollar, and the renminbi has depreciated to 10% against the euro.

"The recent devaluation of the RMB is great for us.

A lot of foreign orders quoted by foreign merchants can not be answered at all, and now there is a little profit. "

Mr. Huang, a businessman in Yiwu, Zhejiang, is engaged in export of Christmas products.

Jiang Zhencheng, general manager of Shanghai Tian Mo stationery, believes that a major factor of export weakness is that the RMB exchange rate has weakened the competitiveness of export enterprises, especially compared with counterparts in Europe and Japan.

The general manager of Zhejiang Zhongjie import and Export Co., Ltd., who is also engaged in export of Christmas products, said that the depreciation of the renminbi is timely and timely. "Half of the contracts signed by the company in the first half of the year have been delivered, and half of them have not been settled.

In a rough calculation, the depreciation of the RMB can bring millions of profits to the company. "

However, more exporters may be faced with a lot of trouble before they taste it.

"When the yuan began to depreciate, I was very happy.

On the one hand, as a small business with instant settlement, the same dollar can be exchanged for more yuan, which means that export profits have been raised.

Zhang Shunying said, but after the depreciation of the RMB continued for some time, it was not happy because the customer asked for a price cut.

Zhang Shunying said that the profit of clothing export has been very thin. If the price is lowered, it will increase the risk of the enterprise. Once the RMB starts to appreciate, it will lose everything. But if the export price is not lowered, these customers will choose to go to the lower price market such as Kampuchea and Vietnam.

It is found that many enterprises have encountered the same problem as Zhang Shunying.

The head of another foreign trade company in Guangdong said that it had planned to deliver the goods. The customer sent an e-mail saying that the renminbi depreciated and demanded a reduction of 3%. Not only the current order should be reduced, but also the order should be lowered later.

Of course, not all enterprises have encountered such a problem. It is understood that these problems are often small businesses with poor bargaining power.

"The contract has been signed, why does the price change?" Shandong family

Chen Xing, foreign trade manager of export leading enterprises, said that most of the orders this year have been finalized, and a number of Christmas orders are already on the production line.

Because the contract has been signed, the customer will normally execute the contract price.

"In theory, the depreciation of the RMB is conducive to export enterprises, but in fact, some small and medium-sized export enterprises, if the competitiveness of products is not strong and bargaining power is poor, once the customers press down the price, they can only export according to the price before the depreciation of the RMB, and they can not get more profits."

Seven good technology group chairman Cai Xiaoqiang introduced.

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Cool with this

The depreciation of the RMB will indeed make the price of export products more competitive and bring more orders.

But if the currencies of other countries depreciate more, that advantage will not exist.

"The collective depreciation of emerging market currencies is unexpected."

Zhang Shunying said that with more and more countries joining the devaluation ranks, the pulling effect of RMB depreciation on exports will be less and less obvious.

Malaysia ringgit has fallen for 8 consecutive weeks, reaching a new low level in 17 years in August 24th.

On the same day, the US dollar rose 0.64% to 14030 against the Indonesian rupiah and the devaluation of the rupiah reached 18%.

Singapore dollar and Thai baht ranked third and fourth respectively, with the depreciation rate of 12% and 10% respectively.

For a time, currencies in almost all emerging market countries had depreciated.

"The pulling effect of currency devaluation on exports will be apportioned and weakened. From the recent devaluation of some major economies, its pulling effect on exports is far less than the depreciation rate."

The director of the foreign trade division of the Ministry of Commerce pointed out that the perfection of the quotation of the RMB exchange rate between the RMB and the US dollar will have different effects on different enterprises. The export oriented enterprises will benefit from it. Importing enterprises will increase the cost of foreign exchange, and some enterprises with heavy assets and high liabilities will also be affected.

As a matter of fact, once the currency devaluation is too large, the purchasing power of many emerging markets will decline, and many of these countries are Chinese export markets.

"Singapore is also one of our main export markets, because it has not been affected by US dollar settlement, but it is expected that future orders will be reduced."

Zhang Shunying said, like the depreciation of the yen and the depreciation of the euro, the depreciation of the renminbi is far less than that of these currencies, and the depreciation of the currency has led to a decline in the purchasing power of these markets and a decline in exports.

Recalling the beginning of the depreciation of the yen, Zhejiang exporter Zhang Xinhua almost rejected all Japanese orders, and he put more energy into the opening up of emerging markets.

But now the emerging market currencies have also depreciated, and Zhang Xinhua is beginning to worry. "Almost every day, I can see the news of the depreciation of an emerging economy in the media."

Xiao Feng, deputy general manager of Shenzhen Datong Enterprise Service Co., Ltd. believes that the currencies of other countries, apart from the US dollar, also have a large decline in the US dollar exchange rate, which also has certain constraints on their purchasing power.

But China is the largest exporter of trade. Under such circumstances, the price of domestic exports is reduced, and the purchasing power of the other side will also be affected.

"Because of the dollar factor, the expectation that the renminbi may go up is relatively small, but the possibility of going down is hard to say."

Xiao Feng believes that if the pressure of RMB appreciation has been alleviated for a long time, the state should make good use of this opportunity to allow export enterprises to take more orders and make the channels between small businesses more flat.