On April 2, the onshore RMB exchange rate against the U.S. dollar opened slightly down 42 points to 7.1100. However, around 9:38, the onshore RMB exchange rate fell to 7.1265 against the U.S. dollar, a new low since October last year, falling by more than 200. point.
On April 3, the onshore RMB exchange rate against the US dollar opened slightly up 47 points to 7.0930.
On March 23, the onshore RMB exchange rate against the US dollar broke 7 for the first time since 2020. Now the exchange rate has fallen further, which has once again attracted the attention of textile foreign trade professionals. However, this good news does not seem to have an effective stimulating effect on the foreign trade market, which is now clouded with clouds.
The RMB exchange rate hits a new low, but Boss Bu has no orders
01
There are no foreign trade orders to receive, and there are no inquiries at all
On the contrary, the depreciation of the RMB exchange rate has made Boss Bu even more anxious. Originally, the depreciation of the exchange rate was more conducive to Boss Bu taking orders and giving him a slight advantage in terms of profits. Nowadays, changes in the exchange rate have little to do with Boss Bu. Overseas customers are all on vacation, and there are no orders or even inquiries. Boss Bu could only watch the exchange rate continue to fall and work anxiously in the office.
According to the person in charge of an old foreign trade company, they mainly sell to Bangladesh. Currently, Bangladesh has closed the country and customers have stopped working at home. They only send simple greetings every day to ensure safety and no longer mention orders. Therefore, there is no intention to inquire in the near future. What impact will the exchange rate changes have?
02
Extension of receivables, no settlement of exchange
Although the current exchange rate will also bring benefits to Boss Bu’s foreign exchange settlement, this may only involve some companies. The entire market is in the doldrums, orders have been cancelled, and goods are in hand, requiring more capital turnover. Once the exchange rate rises, Boss Bu will settle foreign exchange one after another, and there will not be a wait-and-see period as usual. Therefore, most cloth bosses have already made foreign exchange settlements in late March. Secondly, almost all Bubo’s overseas customers are on vacation, and the payment collection cycle for receivables has also been lengthened accordingly. Some of Bubo’s payments have not been received, and there is no opportunity to connect foreign exchange.
The foreign trade situation is grim, and the operating rate of printing and dyeing factories has declined
01
Overseas production suspension , export orders were blocked
According to customs statistics, my country’s import and export of goods trade fell by 9.6% year-on-year in the first two months of this year, of which exports fell by 15.9%. As the international epidemic further spreads, my country’s foreign trade import and export situation may further deteriorate.
A trader exporting to India said: “No overseas goods have been shipped since work resumed, orders that have been placed have been suspended, and orders that have not yet signed contracts have been cancelled. Production is over Due to the lockdown in India, customers are all on holiday, and the goods are still in the warehouse but have not been shipped. The funds are all in hand. If we don’t cancel, we don’t ship, and we still can’t receive payment. The time has come to test small businesses like us. !”
02
Affected by the cancellation of foreign trade orders, printing and dyeing Factory gray fabrics decreased by 30%
The significant reduction in foreign trade orders has had a great impact on both weaving and printing and dyeing companies. At the end of March, some weaving companies issued news of rotating holidays and Qingming Festival holidays. Most printing and dyeing factories say they will not take holidays. Even if there is not much dyed gray fabric, the factory will not stop. They should still ensure that customers can ship goods on time. However, the usual working hours have been adjusted by job rotation.
The operating rate of dye vats has also dropped a lot. The operating rate is generally above 70%. Some printing and dyeing factories have an operating rate of only 50%. Some printing and dyeing factories still maintain an upper level, around 80%. . In terms of the quantity of gray cloth entering warehouses, since the substantial cancellation of foreign trade orders, the quantity of gray cloth entering warehouses has decreased by nearly 30%. With the decrease in order quantity, the busyness of printing and dyeing factories has also weakened, and the shipping speed has accelerated. The average delivery time of dyeing factories is about 5 days.
A salesperson from a printing and dyeing factory told the editor: “Our factory’s foreign trade orders have decreased by more than 60%, and the number of gray fabrics entering the warehouse has decreased. Half of the workers have already started taking turns, and the machines are basically only running at 50%, which is greatly affected. Now the work is very fast, and it can basically be done as soon as it comes, and it can definitely be done in a week.”
Printing and dyeing factory. It can best reflect the market order situation. It can be seen from the printing and dyeing market that the current foreign trade orders are at a standstill. However, some countries will unblock in April and may resume production later, and there is still the possibility of foreign trade orders being placed again. In this regard, Boss Bu also needs to closely track the development and changes of the epidemic and exchange rates, and make early preparations for response. </p
