On May 27, the central parity rate of the US dollar against the RMB was reported at 6.1811. The central parity rate of the RMB exchange rate rose for the second consecutive day. At this point, the central parity rate has increased by nearly 1.7% compared with the end of last year. Under the pressure of RMB appreciation, many domestic foreign trade export companies are facing severe challenges.
Mr. Wang is the person in charge of a cotton textile company in Qingdao, Shandong Province. He said that the rising costs of labor and raw materials have made the company unable to breathe, and starting from the second quarter of this year, the exchange rate has been “increasingly high” which has made him more An “annoying matter”. He told reporters that he was frightened when he saw the news that “the RMB exchange rate has reached a new high”.
In China’s foreign trade, settlement is often done in U.S. dollars. Once the RMB appreciates sharply in the short term, wages will shrink significantly when settling the bill. Because of this, Mr. Wang said that he dare not take orders casually now, especially long-term orders: “Export profits are very low now, but my profits are quite large, only 4% or 5% in total. Now the exchange rate alone It accounts for 1% to 2%, which is equivalent to half of it, and the profit margin is getting smaller and smaller.”
Analyst Yu Fang said that although the uncertainty in the future is still very large, the RMB exchange rate will remain strong in the short term: “The exchange rate may appreciate even more in the second quarter. This year, we predict that the appreciation will be within About 2%, it may move towards the 6.10 position.”
Peng Wensheng, chief economist of CICC, believes that the appreciation of the RMB will slow down.
