Research Into The Influences Of RMB External Appreciation And Domestic Currency Depreciation On The Textile Export

Being guided by comments of countries like America and Japan and international organizations (for example, IMF), the appreciation of RMB became the focus of both domestic and foreign attention at the end of2002. Starting from the development of China, Chinese government began to carry out the floating exchange rate system which was based on the market supply and demand as well as adjusted and managed according to the currency basket from July21,2005. Since then, RMB exchange rate has been keeping rising continuously. By the end of2012, the appreciation amplitude of the RMB intermediate exchange rate against USD had reached29%. However, at the same time, domestic asset price rose largely, the price index of consumer goods rose, China faced with the pressure resulted from inflation and the domestic value of RMB, which was calculated according to purchasing power, descended continuously. The coexistence of the external appreciation and the domestic depreciation of RMB has become a new currency phenomenon in market economy.The textile industry is our traditional leading industry and pillar industry. It is not only the earliest industry access to the international market, but also one of the fastest growing and perfect developing industries. Up to now, China has become the largest textile producing country in the world. At the same time, the export volume of our textile ranks No.1worldwide, holding an important position in global textile trade. The large export volume of textile contributes huge power to our country so that we can earn foreign exchange by the exports of commodities. According to traditional theories about the impacts of exchange rate on trade, the fluctuation in exchange rate of RMB will certainly have important impacts on the exports of textile. This thesis collects and settles data about the middle rate of RMB exchange rate, consumer price index and the export value of textile in recent years, analyzes the influence of changes in money value on the textile export of a country theoretically, and studies the affect of the phenomena that RMB has external appreciation and domestic depreciation on the textile export. Based on this, it establishes a measurement model for factors affecting the textile export and gives empirical analyses of impacts of exchange rate, consumer price index and gross domestic product (GDP) on the textile export of China. At last, it proposes some countermeasures and suggestions for textile export enterprises about implementation of brand strategy of textile enterprises and adjusting, the industrial structure, improving the ability of independent innovation of enterprises, extending the industrial chain to achieve industry transform, using of hedge to avoid exchange rate risk. That is to avoid adverse effects of the phenomena that RMB has external appreciation and domestic depreciation.