According to China Securities Journal, the central parity of the RMB against the US dollar was lowered by 492 basis points on July 12, the latest at 6.6726 yuan, the largest since January 10, 2017. Previously, the Chinese yuan was already in June. Set a record for the biggest monthly decline.
The renminbi continues to depreciate, and some international people expressed concern. And an expert from Peking University said that the recent fluctuations in the RMB exchange rate did not exceed a reasonable range, and calmly observed from a global and long-term perspective, compared with the second half of 2015, recent fluctuations. More is the performance of market sentiment, there is absolutely no need for the market to overreact. The renminbi is still relatively strong in the global currency. In the first half of the year, the renminbi depreciated against the US dollar by 1.7%, while in many emerging market countries, the currency against the US dollar There has been a large devaluation. In the context of China's good economic performance and balanced foreign exchange supply and demand, the RMB exchange rate is fully conditionally stable at a reasonable and balanced level in the current and future period.
For the plastic machine enterprises, compared with the continuous increase in taxes in the Sino-US trade war, the depreciation of the RMB is a relatively good news, because the depreciation of the RMB will benefit the export of Chinese enterprises' products.
Depreciation eases economic pressure and promotes the development of export-oriented enterprises
China is an export-oriented economy, and its export is an important part of China's economic development. One of the reasons why the United States launched a trade war against China is that China's trade surplus with the United States reached 500 billion US dollars (US statistics). The outbreak of the trade war between the United States will inevitably lead to a decline in the export of China's products. According to the information on the China's import and export situation in the first half of the year held by the State Council, the trade surplus in the first half of the year narrowed. 26.7%, expected to be affected by the trade war in the second half of the year, the trade surplus may continue to narrow.
The depreciation of the renminbi can reduce the cost of products for export-oriented enterprises, and thus increase the export volume of products. China's plastic machine industry has already begun a global layout, whether it is the European market, the American market or the South Asian market, there are Chinese plastic products. Shadow. With the opportunity of RMB depreciation, plastic machine enterprises strive to increase the export volume of products, continue to expand the international market share, and take this opportunity to optimize the structure of export products and develop new products with high efficiency, low pollution and high-tech content. Industrial structure optimization and upgrading.
Promote the development of national enterprises and promote employment
The depreciation of the renminbi will weaken the foreign purchasing power of the renminbi, which will lead to an increase in the cost of imported products and the need to spend more money to purchase imported products, which will bring opportunities for the development of China's national industry. As the price of imported products increases, some consumers turn to find For lower-priced alternative products, products of the national industry have obvious advantages in price, and the depreciation of the renminbi can provide power for the development of the national industry.
After the depreciation of the renminbi, the reduction in imports will reduce the competitive pressure on domestic products, the sales of domestically produced goods will increase, and the number of jobs will increase. At the same time, as exports increase, the profits of export enterprises will increase, which will lead to an increase in employment opportunities. Plastic machine enterprises can take this opportunity to actively expand the international market while ensuring the domestic market, expand the scale of enterprises, increase corporate profits, enhance competitiveness, and thus enhance their own strength.
Conclusion
However, the depreciation of the renminbi is not favorable. The depreciation of the renminbi will increase China's external investment costs and increase the cost of imported enterprises. This will also lead to problems such as deepening trade frictions between China and other countries. In recent years, China's press companies are actively In response to the country's 'going out' strategy, foreign investment has increased substantially, but the depreciation of the renminbi will reduce the purchasing power of the renminbi and increase the cost of foreign investment. Plastic machine enterprises should pay attention to this point in order to avoid disadvantages.