Chinese export companies lack strategies to cope with exchange rate volatility
At the start of this month, the China Foreign Exchange Trading centre quoted the central parity of the yuan to the U.S. dollar as the highest value for the yuan since exchange rate reforms in July 2005 at 6.7720 on July 2. Two weeks after resuming exchange rate reform, the yuan had risen 0.81 per cent against the dollar.
“After the financial crisis, the appreciation topic had merely paused for a breath. Now it’s been revived,” said Zhang Zhenyong, president of Beijing B.J. Electric Motor Co., Ltd. Zhang said that while at the moment it doesn’t look like the value of the yuan will change dramatically, he thinks the appreciation trend will continue in the medium and long-term.