In last eight days, the central parity rate of Yuan raised by 700 basis points, which hit a record high.
Shishi is an export-oriented city with total export value of 868 million US dollars in first half year of 2010. As a result, every fluctuation of Yuan will attract Shishi enterprises' close attention.
The annual export value of Shishi garment enterprises surpasses 5 billion Yuan with average monthly export value of 500 million Yuan. Most companies take US dollars as settlement currency. Moreover, it takes almost 2 months for an order from production to shipment. As a result, any company which doesn't finish settlement of foreign exchange will lose some value due to this appreciation of Yuan.
Enterprises should not only focus on production but also on international currency exchange environment. Now, enterprises in Shishi take more initiative in negotiating price because of the industry upgrade and the improvement of quality.
