First of all for export enterprises, many orders are priced in dollars, so since the foreign exchange reform, the RMB appreciation has been gradually eroding the level of corporate profits. If yuan against the US dollar is down, it will have a positive effect on corporate performance. At the same time, it will greatly increase their own competitiveness.
For import businesses, devaluation, obviously, to some extent, improves the corresponding import costs. In order to reduce the corresponding losses, we recommend importing companies to do some corresponding derivative products to avoid exchange rate fluctuations.
General Administration Customs released, on August 8th, for the first seven months, China's import and export value reached 13.63 trillion yuan, down 7.3% over last year. Among them, exports 7.75 trillion yuan, a slight decrease of 0.9%; imports 5.88 trillion yuan, down 14.6%; trade surplus 1.87 trillion yuan, expanding 1 times.
At that time some scholars believed that in the past few quarters, the yuan against the US dollar remained stable, while the dollar continued strength, other large foreign country currency generally depreciated, China's export performance was dragged down to some extent.
In addition to the RMB, the Turkish lira also depreciated, recently, a domestic boiler plant director said, they were negotiating with a Turkish buyer about the boiler exports to Turkey, but due to lira against euro down by nearly 20%, the Turkish buyer decided to buy their own country’s boiler, and Chinese products have price advantage no longer.
(www.chinainout.com)
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