*** Appreciation is not conducive to the export of China's pump companies

On December 26, the central parity of RMB against the US dollar was reported at 6.3167 yuan, an increase of 0.07% from the previous day. The strong middle price drove the strong exchange rate in intraday trading. The spot market closed and the renminbi was quoted at 6.3198 yuan against the U.S. dollar. It hit a new high since the exchange rate reform in 2005 on the second consecutive trading day. And the highest hit in the session was 6.3160, the highest level since the unification of official and market exchange rates in 1993. However, this price rose 0.1% from the median price, and the lowest price on the day was 6.3331, which was 2.3% lower than the median price. This shows that the game between market and policy pricing is still in progress.

With the appreciation of renminbi valve products, foreigners will have to collect more US dollars, pounds, rubles, yen, Australian dollars, and euros to purchase our pump valve products. This means that our valve products have gone up in price in disguise.

With the appreciation of the renminbi, not only China’s foreign trade companies are facing greater market pressure, but export-oriented pump and valve companies are also facing greater market pressure, especially for small and medium-sized processing companies.