RMB appreciation pressure increase

How to avoid exchange rate risk as export enterprises, especially the most important issue facing SMEs. 108 held in the previous session of Canton Fair, some small and medium processing enterprises of foreign trade and therefore the boss frown. Some places even the phenomenon of the sharp reduction in overseas orders, a new round of small and medium enterprises could be repeated closures.

China Foreign Economic and Trade University, deputy director of the Institute open economy He Weiwen, the reporter said that many U.S. politicians and scholars have been forced on the RMB exchange rate pressure to the rapid appreciation of the RMB exchange rate to save the U.S. trade imbalance. RMB exchange rate issue is the U.S. political and international, next year is likely to increase the pressure on, corporate profit margins will be compressed further, the situation is not optimistic. Most affected by the appreciation of the textile and clothing manufacturers and office equipment maker, which seems to be the biggest pressure in their hearts of stone.

By the appreciation of the renminbi in order to eliminate the idea of China's trade surplus may not be able to work. There are two main reasons: first, the number one trade surplus with major countries currencies would rise significantly even if the vertical comparison of rated, but the horizontal comparison may not be able to trade with their competitors, therefore, its major trade competitors, not sufficient to eliminate exchange-rate appreciation its cost advantage. In the current war in this currency, the RMB has appreciated against the dollar of course, about 2%, but China's export industry, many foreign competitors, currency appreciation is greater, resulting in more affected by the cost, there can be no corresponding from China How many hands to grab market share in the.

Second, if the relatively low domestic inflation in surplus countries, will be at least offset the cost of exchange rate movements on the impact of export industries. Since the 1970s, a continuous appreciation of the yen against the dollar, but Japan's trade surplus with the U.S. position has never wavered, but continues to expand along the difference is significant from the nominal exchange rate appreciation of the yen was offset by deflation in the Japanese relative.

Since China has leaped to the world's second largest economy, not only the size of many commodity markets have been highest in the world, the financial market in the world ranking jumped rapidly, other things being equal, the scale itself would only use the two in China mechanism to resolve the impact of exchange rate appreciation on trade have created favorable conditions, which are expected to respond to shocks more smoothly.
written by www.chinaproductcenter.