The pace of appreciation of the RMB exchange rate accelerated. After the central parity exchange rate of the RMB against the US dollar broke through the 6.54 mark on Wednesday, it rose 139 basis points for three consecutive trading days, reaching a record high since 6.5301 last Friday. In the context of the appreciation of the renminbi, reporters interviewed exhibitors at the 109th Canton Fair. Many exhibitors stated that rising raw materials costs, rising financing costs, and rising costs of controlling exchange risks all put pressure on them. A small hardware manufacturer is even more frank. "The cost pressure is already somewhat unbearable."

Accelerate the pace of RMB appreciation

Zhao Yufang, deputy governor of Guangdong Province, said that according to calculations, the re-opening of the exchange reform at the end of last year will increase the value of the renminbi by 1 percentage point, and that of the Guangdong export enterprises will increase by about 8 billion yuan. Under the influence of multiple factors, the affordability of foreign trade enterprises, especially traditional labor-intensive export enterprises and small and medium-sized export enterprises, is limited.

At this year's Canton Fair, the reporter saw a lot of booths are eye-catching with a brand to mark the day's RMB exchange rate, exhibitors told reporters that this is to facilitate bargaining with overseas buyers. According to a person from the marketing department of an electrical company in Foshan, if the renminbi appreciates by 1%, the company will face an exchange loss of 16,000 U.S. dollars or more than 100,000 yuan, and corporate profits will decrease by about 5%.

Price increase is less than raw materials

Humen, a clothing export business owner, said that the most feared export companies are changes in the exchange rate, especially the exchange rate of the renminbi against the US dollar. The higher the renminbi's appreciation, the greater the loss of profits. According to him, "The more you make, the more you lose, and the more orders don't dare."

At the Canton Fair, most of the exhibitors stated that although export prices have been increased by 15% to 20% this year, they are still far below the nearly 20% to 50% increase in raw materials. A sanitary ware company sales manager said that the cost has increased by 15% to 20%, but the quotation has only increased by 8% to 10%, and the customer is not sincere to continue talking. In the face of price hikes by Chinese export companies, some European and American customers have begun to reduce their purchases in China, and some low-end products will be more procured from Southeast Asia.

Exhibitors have expressed their hope that the country will maintain its basic stability in foreign trade policies. In particular, it is suggested that the floating range of the RMB exchange rate should not be too large, allowing exporters time to absorb the impact of the exchange rate.