RMB exchange rate fell below 6.33!

January 25, 2018! The central parity of RMB against the USD was 6.3255.

Exchange rate is one of the main factors affecting trade. As to the extent to which the exchange rate will affect trade, it will be difficult to measure! Many foreign trade business owners holding long-term draft hold wait-and-see state, and now continue to decline. Higher and higher foreign trade costs, lower and lower profits, worked hard throughout the year, the exchange rate of a liter, all white busy!

The impact of RMB exchange rate will continue to decline

01 export business profits are swallowed

The sharp appreciation of the renminbi is undoubtedly the nightmare of exporters holding foreign exchange in their hands.

In a report this month, Reuters quoted an export-oriented business source as saying that for an export processing enterprise, it would be very dangerous if it can not guarantee a net profit of 5% or more. As a result, the exchange rate could not go untapped risk. There are many small businesses around this year carrying hard losses carrying losses, and some have been drained.

In the two days when the renminbi soared, this situation was especially noticeable. The mentality of the holders of exchange rate holders is increasingly unstable as the renminbi is rapidly strengthening. We expect that the renminbi will fall back and then settle again. However, if the Renminbi is really adjusted and it is more greedy and so on, the result is often more uneconomical. Do not choose to settle.

02 Weaken the International Competitiveness of China's Foreign Trade Products

At this stage, China's foreign trade exports are mainly concentrated in primary products and labor-intensive products. Relatively speaking, the price factor remains the advantage of our victory over other countries. As the exchange rate goes up, the cost of exporting enterprises will increase and the risks will increase. Naturally, export products will be greatly reduced. China's trade in goods exports will show a more substantial decline.