Research Of Exchange Risk Prevention Of Chinese Enterprises

In recent years, with the development of world economy integration, the scale of foreign trade of Chinese enterprises shows stable and fast growth. The exchange rate risk of our firms becomes higher involve in international trade. At the same time, the RMB exchange rate system reform is carrying through unceasingly. The realization of RMB completely free exchange is an inevitable tendency. Chinese multinational companies are facing with the question how to manage the foreign exchange exposure. To dodge the heavy loss which created by the exchange rate risk, and maintain the achievements, Chinese enterprises must take precautions and research how to prevent the exchange rate risk.The main contribution in the paper is that I analyze the feasibility of setting up a foreign exchange forward market in our country, and point out that foreign exchange forward market is the necessary condition to improve the RMB foreign exchange derivatives market. Also, I give some methods to improve existent problems in the financial derivatives and put up some policies and suggestions aimed at Chinese enterprises prevention the foreign exchange risk.Chinese enterprises should establish the consummate exchange rate risk management organization as soon as possible and use the financial derivatives to prevention of the exchange rate risk in our country. At the same time, the related department must cooperate energetically to impel the development of the domestic RMB derivatives market. Only in this way, enterprises can reduce the influence of the exchange rate risk and win in the intense competition.