Source: Yiwu sourcing agent Author: Helan Date: 2012-10-17
Any export-oriented enterprise can not ignored exchange rate losses, if the appreciation of the RMB faster, more export enterprises are facing closure, and this will pose a threat to the economic growth of China, in fact, RMB 7 years of cumulative increases over 32 %, China's economic growth rate has dropped to its lowest level since the outbreak of the global financial crisis.
The vice president of an electronics company in Shenzhen, pointed in an interview with the "Daily Economic News" that the appreciation of the RMB has a huge impact on enterprises, now mostly based on the dollar-denominated, the sharp drop in orders, exchange rate losses resulting in further reduced of corporate earnings.
"This is not just our experience, it’s the industry, even the dollar-denominated export-oriented enterprises have been exposed to exchange rate losses." The vice president said.
Deputy director of the Institute of International Finance, the Bank of China Zong Liang thought that exchange rate changes this year is more special, especially the recent large variations of the RMB within a relatively short period is caused by quantitative easing policy implemented by the United States and Europe. The export-oriented enterprises are caught off guard because exchange rates were changed without any instruction.