On June 29, the central parity of the RMB against the US dollar depreciated at 206 points, at 6.6166, the lowest since December 13, 2017. At this point, the exchange rate of the RMB against the US dollar has depreciated by 3.5% in the first half of the year, and the adjustment speed and magnitude exceeded market expectations. According to industry analysts, the RMB exchange rate is going to be good for export-oriented industries in the short run.
Zhang Zhihong, a petrochemical analyst at China Merchants Securities, said that the depreciation of the renminbi will increase the procurement costs of importing enterprises, but for export-oriented chemical companies, it will form a favorable one, which can reduce costs and enhance export competitiveness.
'For example, the export of fertilizers, diammonium phosphate, compound fertilizer and phosphate rock will be stimulated by the depreciation of the RMB. It is expected that the export volume of fertilizer will be further amplified due to the depreciation of the RMB.' Zhang Zhihong said.
'The depreciation of the renminbi is good for the company. After all, our overseas income exceeds 50%. The impact of the devaluation of the renminbi on profits is mainly reflected in the export of products and assets denominated in US dollars. ' On June 28, the securities department of Zhejiang Longsheng Group Co., Ltd. The staff told reporters.
Ding Meng, a macro and foreign exchange analyst at the Bank of China in London, pointed out that the recent renminbi exchange rate continued to weaken. The main driving factor is still the shock of the US dollar index. It is basically stable compared to a basket of currencies. The view that the renminbi has entered the depreciation track is currently Can't be established.