Research On The Exchange Rate Risk Management Of Chinese Commercial Bank

From 1994, our country established the exchange rate system, which is managed floating exchange rate system on the basis of market's supply and demand, focusing dollars actually. It is the fixed rate system in essence. From July 21, 2005, our country has begun to implement a new exchange rate system, which is managed floating exchange rate system on the basis of market's supply and demand, according to a basket of currencies to adjust. Therefore, China's commercial banks didn't attach importance to the fact that exchange rate fluctuation may be related to likelihood risks, so the level of management was low. Domastic commercial bank who was the most important roler would face gigantic risk when RMB exchange rate formation mechanism reform has taken place. Given the background, the investigation will play an important role in managing exchange rate risk to China's commercial banks.First, it reviews the background of investigation and the theories of exchange rate risk management of commercial banks. The background of investigation include outside environment and inside environment of commercial bank. Second, it studies the performance and the recognition of exchange rate risk in commercial bank. In the following chapter, it is the analysis of influence way to commercial banks when the RMB exchange rate adjusts. The actual influence on domastic commercial bank's ability of profit and secure result from the exchange rate adjustment in July 21, 2005 .Then, it propose domastic commercial bank's exchange rate risk management system, including management principle, management organizational structure and management technical method. Finally, this article put forward suggestions to deal with RMB exchange rate adjustment risk for domastic commercial bank.