Currency adjustment will make China’s leather exports more valuable
11/08/2015
According to the FT, the Chinese government made the move in an attempt to “battle a slowing economy” and combat “an unexpectedly large fall in China’s exports”. Figures for July 2015 showed a decline in export revenues of 8.3% compared to the same month in 2014; economists had been expecting a fall of around 1.5%.
An initial reaction from hide traders exporting hides to tanners in China suggested that their customers in the leather industry there will have to be a small amount, less than 10 renminbi, extra per hide. However, if those tanners export the finished leather they make from these imported hides, they will receive a boost of almost double that amount because the currency devaluation will give them a higher sales price.
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