Analysis Of The Three Major Impacts Of RMB In SDR On Cotton Market

Recently, good news came from the financial market. The Executive Board of the IMF, representing the 188 Member States, announced in Washington that the renminbi met the widely used standard by vote. IMF put the renminbi into the basket of SDR of the special drawing rights.

The news is that the market is inspiring. Many people expect that its influence is no less than that of China's entry into WTO.

A long run

Business people say: "well, at least in the next 20-30 years, China's economy will grow at a high speed."

When I asked whether the basket would affect cotton city, he also said optimistically that at least three points were visible.

First, market confidence will rise.

Confidence is more valuable than gold. Confidence is rising, and consumption growth is bound to follow.

China

The export of clothing is mainly for export. In recent years, the US dollar is the currency of settlement. After the basket is put into the basket, RMB can be used as the settlement currency, which will reduce the textile products.

Business risks make international pactions no longer affected by exchange rate fluctuations.

Second, the futures market will take the lead in achieving growth.

Futures have always been the "weathervane" and "barometer" of the market, and the RMB basket will first pass the "good news" to the futures market.

In December 1st, despite the calm performance of Zheng cotton futures, its main 1605 contract closed at 11690 yuan / ton, down 45 yuan / ton, but in the long run, the market believes that the futures market will usher in a better situation.

Third, it will help to reduce the impact of foreign yarn on the Chinese market.

Data show that in the 1-10 month of this year, the import of foreign yarn reached 2 million tons, an increase of 21.9%.

The impact of outer yarns on Chinese yarns is increasing, threatening the safety of China's cotton textile industry.

With the internationalization of RMB, the RMB basket will be more conducive to Chinese enterprises going out, and more conducive to attracting foreign investment to China's investment. Then, from the internationalization of finance to the internationalization of industry, China's cotton textile industry will become the global competitive power.

However, in the process of understanding, although most people are optimistic and positive about the RMB basket, some sensible people remind us: first, the official basket of the Renminbi should wait until October 2016, so the profits brought by China in the short term should not be blindly optimistic, and the operation of the virtual market such as stock market and futures should be more prudent and not be "eternal regret". Secondly, the impact of RMB basket playing is the financial sector, and the impact on the industry should be relatively lagging behind.

Cotton market in the near future is cotton market "ice and fire double days", excellent cotton price, low cotton price, good cotton is hard to get, so cotton ginning mills, cotton traders, textile enterprises to enhance the quality of cotton in the first place; two, in recent years, China's cotton textile industry is challenged by Southeast Asia, China's textile to high-end development, entering differentiated competition has a long way to go, and enterprises should be self reliant and independent.

This is the foundation for the development of China's cotton industry. Bao Jianfeng is not afraid of strong enemies to attack.