Yuan appreciation erodes exporters' confidence
By Feng Jianmin |
May 17, 2013, Friday
|
Print Edition
Print Edition
THE yuan's recent strong appreciation has eroded exporters' confidence and their willingness to take new orders, the Ministry of Commerce said yesterday.
"Quick appreciation helps improve importing, but has a big negative impact on exporters' contracts and profits," spokesman Shen Danyang said.
He said a survey conducted by the ministry found 77.5 percent of exporters had noticed a decline in profits, with 6.6 percent expecting deals to be broken.
"Exporters participating in this spring's China Import and Export Fair in Guangdong said that although overseas demand had picked up, they were not confident about the long-term business outlook due to the yuan's quick appreciation," Shen said. "They dare not take long-term contracts."
Small enterprises are the most vulnerable to the yuan's appreciation, Shen said.
It has strengthened nearly 1 percent since April 1, more than five times the growth in 2012.
Economists attribute the appreciation to a relatively stable economic outlook and a huge inflow of hot money in the past few months.
"Quick appreciation helps improve importing, but has a big negative impact on exporters' contracts and profits," spokesman Shen Danyang said.
He said a survey conducted by the ministry found 77.5 percent of exporters had noticed a decline in profits, with 6.6 percent expecting deals to be broken.
"Exporters participating in this spring's China Import and Export Fair in Guangdong said that although overseas demand had picked up, they were not confident about the long-term business outlook due to the yuan's quick appreciation," Shen said. "They dare not take long-term contracts."
Small enterprises are the most vulnerable to the yuan's appreciation, Shen said.
It has strengthened nearly 1 percent since April 1, more than five times the growth in 2012.
Economists attribute the appreciation to a relatively stable economic outlook and a huge inflow of hot money in the past few months.
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