Xx Textile Co., Ltd. Response To The Appreciation Of The Rmb Exchange Rate Risk

Textile and garment exports are our country's largest pillar industry, is also the main products to achieve our country's trade surplus, industry export dependence up to 50%, So is more sensitive to the changes of RMB exchange rate; On the other hand, since 2005,the textile and garment industry is continuously suffering, experienced a series of twists and turns such as the elimination of quotas, export taxes, "Special protection" warning, the appreciation of the RMB, the abolition of import taxes, China-EU and Sino-US textile negotiations, quotas bidding and so on, the time of post-quota textile and apparel industry's bright future has been greatly reduced. Expansion of RMB exchange rate fluctuation range undoubtedly added to the exchange rate risk of our country's enterprises, so China's enterprises should attach great importance to the exchange rate risk.In this paper, refer to the operation and the characteristics of the external sector of textile enterprises, analyzed the impact of the textile industry based on a revaluation of the RMB exchange rate risk, and go to further analyzed the status of the foreign exchange risk management, as well as the difficulties faced by the industry at this stage; At the same time, combined with foreign exchange risk management theory, carried out a more pleasant-depth case studies on XX textile Company. At last, based on local condition of China's textile enterprises and domestic financial market environment, this paper provides comprehensive solutions to textile enterprises on avoiding exchange rate risk. Textile enterprises shall optimize the enterprise structure, and taking comprehensive measures, including adopting derivatives, financial solutions, and trade policies to avoid exchange rate risk.