Best E Bike,Electric Dirt Bike,26 Inch Folding E Bike,Full Suspension Electric Mountain Bike Myatu Moped Technology Co.Ltd. , https://www.myatugroup.com
The depreciation of the dollar promoted the appreciation of the renminbi. In 2007, the appreciation of the renminbi accelerated, and the appreciation rate reached 6.98%; especially after October 2007, the appreciation of the renminbi was significantly accelerated and the monthly increase was more than 2%. The pressure on the appreciation of the renminbi in 2008 did not diminish. On January 18, the central parity of the yuan against the US dollar fell to 725.71 yuan. The appreciation of the renminbi has undoubtedly directly affected the international competitiveness of Chinese products including petrochemical products.
Since the U.S. dollar depreciates significantly against other major currencies in the world, and the exchange rate of the U.S. dollar is mainly a policy of pegging to the U.S. dollar, the yuan has experienced a significant depreciation against major currencies such as the euro and the British pound. This aspect has increased the cost of importing petrochemical products from the EU. On the other hand, the EU has taken trade measures as often as the United States, and China’s petrochemical products have historically been the hardest hit by trade friction. In the past two years, the EU has adopted trade measures for pentaerythritol, polyester staple fiber, persulfate, polyvinyl alcohol, caprolactam, dicyandiamide and other products. The depreciation of the US dollar has indirectly increased the possibility of Sinopec's trade frictions in the EU.
The depreciation of the US dollar did not lower the import cost of petrochemical products. Instead, it also caused a significant increase in the prices of crude oil and chemical raw materials in the international market, which increased the trade deficit of China's petroleum and chemical industries. At the beginning of this year, one of the most important reasons for the international crude oil price to break 100 was the depreciation of the US dollar. Due to the depreciation of the U.S. dollar, some petrochemicals, including crude oil, refined oil, and rubber, which are mainly denominated in U.S. dollars, have used rising prices to make up for their losses. Due to the strong market expectation that the U.S. dollar will continue to weaken, the prices of these products will increase far more than the U.S. dollar. The depreciation rate is greater. According to statistics released by the General Administration of Customs, China imported 163 million tons of crude oil in 2007, which amounted to US$79.77 billion, an increase of 12.4% and 20.1% over the previous year; imported refined oil was 33.8 million tons, amounting to US$16.44 billion, compared with the previous year. The number dropped by 7.1%, but the amount increased by 5.7%. The external dependence of crude oil, rubber and synthetic materials in China is very high. These commodities are the basic raw materials for the chemical industry. The import prices of these products have increased, and they have been sent to downstream processing enterprises.
From this analysis, China's oil and chemical industry should have a clear understanding of the impact of the depreciation of the US dollar, and must not miscalculate the negative impact of the depreciation of the US dollar because of the large trade deficit in the industry. It is necessary to take corrective measures to devalue the US dollar. A good mother picks up a sneaky si
Since last summer, due to factors such as financial market crisis triggered by subprime mortgages in the United States, the depreciation of the US dollar has continued to accelerate. The depreciation of the U.S. dollar will undoubtedly have a greater negative impact on China's economy and cause direct losses to China’s huge foreign exchange reserves. As China's oil and chemical industry is a trade deficit industry, it can easily lead to misunderstandings. It is simply believed that the depreciation of the US dollar may be beneficial to the trade and development of the industry. In fact, the depreciation of the U.S. dollar has seen more harm in the oil and chemical industry in China and it is difficult to see its benefits.
April 12, 2021