Exchange Rate Reform Creates Dividends For Textile Industry

In his report on the work of the government this year, Premier Li Keqiang put forward the key points of promoting new breakthroughs in the reform of important fields, and further promoting the reform of the RMB exchange rate formation mechanism has become an important part of deepening the reform of the financial system. In March 15th, the people's Bank of China announced that the floating range of RMB against the US dollar will be expanded from 1% to 2%, and the reform of RMB exchange rate formation mechanism will further deepen.

Accompany Exchange rate market Reform, Textile industry Also experienced the process of continuous improvement of their adaptability. Many enterprises still have a fresh memory of the sustained and rapid appreciation of the RMB in 2007. The exchange rate against the US dollar has risen by nearly 7% a year, the competitiveness of export products has decreased, and the loss of foreign exchange earnings has increased, making textile enterprises unable to bear heavy pressure. However, from this experience, enterprises gradually grasped the skills of circumvention of exchange rate risk by using various financial instruments, and gradually explored the law of the fluctuation of RMB value market. After the international financial crisis, although the RMB against the US dollar has seen several rounds of rapid appreciation, and the elasticity of two-way volatility has been increasing, textile enterprises have become more steady in dealing with exchange rate fluctuations. The use of product update and management techniques to solve exchange rate risks is a necessary skill for most enterprises.

Nowadays, RMB The reform of exchange rate formation mechanism has gone deeper and deeper, and the ability of textile enterprises to cope with natural conditions is also facing more stringent requirements. The elasticity of exchange rate floating increases, which means stronger market attributes. If enterprises want to know more about the various factors of the capital market, they can predict the trend of exchange rate more reasonably and make the correct response. At the same time, avoiding exchange rate fluctuations affecting export competitiveness remains the most realistic task. Especially in the background that the equilibrium level of RMB exchange rate has not yet reached and the appreciation is still in the mainstream trend for a period of time, replacing the price with the product as the core competitiveness is still the key to deal with the exchange rate risk.

The reform of exchange rate formation mechanism has many long-term benefits for the textile industry. The improvement of exchange rate marketization will promote China's balance of payments to become more balanced and domestic economic growth more healthy and healthy. For the textile industry, this will mean a more perfect macro operational environment, a more realistic and stable growth of domestic demand, and a more stable and long-term policy system. The textile industry has been developed in the wave of China's market economy. The increasingly perfect market economy system and market operation mechanism are the most nutrient growing soil.

Since March, the macroeconomic data started in 2014 have been released one by one. The indicators indicate that the downward pressure on China's economic operation is still very low. However, the exchange rate reform measures were introduced in mid March, which fully demonstrates the firm determination of the country to deepen reform. For the textile industry, we must face up to the long-term significance of the reform, actively comply with the trend of reform and insist on self adjustment and upgrading before we can finally share dividends in the reform.