China says currency swings add to trade uncertainty
China’s exports could suffer if other developing countries’ currencies fall sharply against the dollar -- making their exports cheaper -- the government has warned.business Updated: May 07, 2009 10:46 IST
China’s exports could suffer if other developing countries’ currencies fall sharply against the dollar -- making their exports cheaper -- the government has warned. The commerce ministry said in its first-quarter report on external trade that recent “intense fluctuations” in the exchange rates of certain nations add uncertainty to the outlook for global commerce.
“If the currencies of certain developing countries with similar product composition depreciate sharply, this would have a big impact on the price advantage of Chinese goods,” said the report, posted Wednesday on its website.
It did not name specific countries.
Some international manufacturers have moved facilities to countries such as Vietnam and Bangladesh as costs increase in China, in part due to the steady rise of the Chinese yuan.
China’s exports fell 17.1 percent in March, their fifth straight monthly decline, according to the most recent available statistics.
First Published: May 07, 2009 10:45 IST