Sichuan shoe exports are seriously affected by the RMB exchange rate

According to the latest data from the China Foreign Exchange Trading Center, on September 21, the central parity of the yuan against the US dollar rose by 6.7 points, rising 113 basis points from the previous trading day, and rewriting the highest record since the exchange reform on the eighth consecutive trading day. It is understood that since September, the cumulative appreciation of the renminbi against the US dollar has reached as high as 1.6%, which has caused greater losses to the footwear industry with lower profitability.

September's appreciation of 1.6% 8 new highs broke 6.7

Since September 10, the exchange rate of the RMB against the U.S. dollar has risen to a new level. At the rate of more than 100 points a day, five historical highs since the exchange reform have been refreshed. On the two trading days of last Friday and Monday, the yuan exchanges against the U.S. dollar. Although the same new high, but the exchange rate of the middle price rose only 9 and 72 basis points respectively, to 1 US dollar against 6.7110 yuan. Just as the market thought that the appreciation of the renminbi was slowing down, and that a possible callback might come in, the central parity of the yuan against the US dollar soared by 113 points yesterday. It broke through the 6.7 mark at one stroke, reporting 1 dollar to 6.6997 yuan, the eighth consecutive trading day in a row. Since the exchange rate reform in 2005 was a new high, the renminbi appreciated by 820 basis points for the eight trading days. Since September, the renminbi has risen from 6.8105 to 6.6997, a cumulative appreciation of 1.6%.

As for the reasons for the sudden appreciation, the director of the China Institute of Foreign Exchange Investment Research, Tan Yaling, believes that the main cause is still affected by the depreciation of the US dollar. In the previous period, the renminbi once fell back to 6.8. The rise above 6.7 is only a correction before. She also believes that the renminbi has not fluctuate widely. Exceed normal range. However, some analysts believe that the US Congress’s frequent pressure on the renminbi recently, coupled with the large number of new foreign exchange accounts in August, reached a peak of 243 billion renminbi, and international travel capital players aggressively entering the Chinese market caused considerable pressure on the appreciation of the renminbi. These are the reasons for the appreciation of the renminbi.

Shoes companies lost more than half of their profits less than 3%

The appreciation of the yuan against the US dollar has reached 1.6% since September, a trend that has had a huge impact on Sichuan's foreign trade companies.

“The biggest impact is on shoes, caps and textiles, which have large export value, but the profit margin is very low.” According to a person who has been exporting for a long time, the appreciation of the renminbi not only increases the price and cost, but also weakens the competitiveness of export companies. Will directly bring about loss of profits. He pointed out that the current overall profitability of the electromechanical industry is between 8% and 10%. The impact on the appreciation of the renminbi can also be digested. However, many textile and footwear exports with lower profit margins will suffer a sharp increase in foreign exchange and lose nearly half of their profits.

According to a person in charge of the Camido footwear industry, the current profit margin of the footwear industry is less than 5%, most of which is around 3%. If the appreciation is gradual, the impact on export companies is within control, and the RMB appreciation in September is 1.6%. For many export shoe companies will bring a lot of profits.

An old shoe company manager in Chengdu, who asked not to be named, revealed that although there is a certain ideological preparation for the long-term trend of appreciation of the renminbi, the short-term and fierce appreciation of the renminbi in recent days is still very sudden. He calculated that the company's export profit margin is not To 3%, a 1.6% appreciation of the renminbi means that the income at the time of foreign exchange settlement is further reduced by 1.6%. "The loss of profits is almost 50%."