The devaluation of RMB have impact on zinc sulfate export?

Recently, RMB exchange rate is drop over 5%, hitting the biggest decline in 20 years. Customers of Our Rech Chemical Co. Ltd want to know that whether the devaluation of RMB will have impact on zinc sulfate export? The following reasons would let you know.

First, the demands and supply in zinc sulfate market is stable. Zinc sulfate is mainly used in the feed additive, chemical, fertilizer and mining industry. Due to the wide uses of zinc sulfate, and the international market demands the same as previous years, the devaluation of RMB have no substantive affect on zinc sulfate export.

Second, RMB exchange rate not formed a tendency of devaluation. The central bank launched a new reformation to complete the formation mechanism of RMB exchange rate and make the currency devaluation becoming a spontaneous adjustment by the supply and demands of market. That is the reason why the exchange rate won’t formed a tendency of devaluation. This reformation help the central bank enhanced the autonomy of monetary policy and reduced the impact of external shocks on the domestic financial market.

Finally, the change of exchange rate may be an opportunity for export enterprises. But the devaluation of RMB will not stay for a long time. For the chemical products like zinc sulfate, the devaluation of the RMB will not have much effect on its export.