Asian Countries' Currency Devaluation Is A "Heavy Blow" To Clothing Exporters.

"Our recent

Orders are all fixed exchange rates, so the depreciation of the renminbi will have little impact on us in the short term.

TCL Limited by Share Ltd assistant president Liang Qichun said.

According to recent data from China foreign exchange trading center, the exchange rate of RMB against the US dollar was 6.4085, reaching a four year low.

In the past two weeks, the RMB has depreciated by 4.63% against the US dollar, and the renminbi has depreciated to 10% against the euro.

"In recent years, the unilateral appreciation of the renminbi has a great impact on exports."

A person in charge of Commerce Department of Guangdong Province, who does not want to be named, said, "especially since this year, the currencies of some countries have depreciated, which is adding to the burden on export enterprises."

In recent years, China's export enterprises are suffering from the unilateral appreciation of the renminbi.

It will be a great benefit to export enterprises.

However, it is found that the export enterprises are showing a "cautious optimism" in the current round of devaluation.

Take Liang Qichun's TCL as an example. This year, the export market of the company is obviously affected by the exchange rate.

Because of its "foreign exchange settlement," half of which is US dollars and usually euros, the euro settlement is partly damaged due to the depreciation of the euro.

Faced with the predicament, TCL, like many other enterprises, has adopted the practice of locking the exchange rate, that is, through forward settlement and sale of foreign exchange and Renminbi.

And other businesses, so that financial costs can be locked in advance, thereby avoiding the risk of exchange losses caused by unilateral appreciation of the renminbi.

"Of course, depreciation will definitely help our products export."

Bai Mingshao, deputy general manager of Guangdong Guang Xin Holding Group Co., Ltd.

A period of time ago, due to the appreciation of the renminbi and the devaluation of the currencies of Russia and the European Union in major markets, the export business of his company suffered great losses.

Faced with the current depreciation of the renminbi, many exporters began to unlock the exchange rate to devalue the dividend in advance.

Other enterprises are facing different difficulties.

One family

Zhang Liying, the head of the export enterprise, said that because of the devaluation of the RMB, many of her customers have put forward the demand for price reduction, which gave her "a good mood to pour a pot of cold water".

"The price has already been talked about, it will be shipped immediately, so it's not unreasonable."

Zhang Liying complained.

But she did not want to risk "being deadlocked with customers."

"Doing this business is a small profit, customer resources are very important."

Zhang Liying said.

It is worth mentioning that not all export enterprises have encountered similar situations.

Most of the enterprises that are required to lower their prices are small businesses with poor bargaining power. This weakness provides an opportunity for overseas customers to "ask for no distinction".

In the current round of devaluation of the renminbi, many emerging market countries have joined the devaluation team, which has led many exporters to lose their advantage through devaluation.

There are signs that the prelude to Asian currencies' competitive devaluation has been drawn up recently. Given that Asia is an important export market for China, this situation will be a heavy blow for Chinese exporters.

"For many of our peers, (RMB) unilateral appreciation or devaluation too fast is not a good thing, we need is relatively stable and predictable exchange rate."

A head of a foreign trade export enterprise said.