The median price for exchange rate of RMB against the U.S. broke 6.7 yuan on September 21, 2010, according to the latest data released by China Foreign Exchange Trading Center. So far the cumulative appreciation against the dollar is as much as 1.6% since September, which brings greater loss for low profit exports of shoes.
The correspondent of Chengdu Commercial News said footwear and textile are the low profit industries, the shparp fluctuation of RMB will directly cut their profit earning by half, and it also brings the production costs increasing and weakness in competition.
One of footwear exporters who declined to be named said despite we have made preparation for the trend of RMB revaluation, we can’t accept the sharp rising in such short period of time. Currently the profit for our footwear exports is less than 3%, 1.6% appreciation of the RMB means our profit earning will be dropped by half, that is big losses for us.
