Research On The Change Of Exchange Rate

In recent years, RMB exchange rate continued going up. The international currency exchange rates change rapidly. The current Chinese enterprises should strengthen the exchange rate risk management. Exchange rate fluctuations affect not only the company's profit, but also may affect the subsistence of the enterprise. Advanced production technology, low labor costs and good performance may not be important for a company, but exchange rates may significantly change a well-run company into a crisis overnight. Therefore, exchange rate movements should be full of great importance. Exchange rate will lead to dramatic changes in the exchange rate risk enterprises. Enterprises of exchange rate risk faced by a multitude of forms, such as operating income and operating expenses in different currencies, exchange rate changes in real income may lead to decrease or increase in actual expenditure. Financing in the international market to borrow funds in one currency, and repayment of funds is another source of currency exchange rate between two currencies may lead to changes in borrowing costs. These problems plague many companies. Foreign Trade in the enterprise as a result of the weight increased, and settlement will change.Exchange rate mechanism in Chinese reform process, the uncertainty and the complexity of exchange rate changes increased. Foreign exchange risk prevention and management has become the important issues that Chinese enterprises have to face and resolve. Enterprises should carefully study the new situation and the type of exchange rate risk characteristics of options to strengthen the effective exchange rate risk management strategy.The article is divided into five parts:The first chapter of the papers introduces the research purposes and research significance.The second chapter describes the factors that affect the exchange rate changes. It introduces which lead to fluctuations in the exchange rate of the domestic factors, including economic development factors, the trade surplus factor, the real economy and monetary dependence on the external economic operations and other factors. In addition, also gives a brief introduction of exchange rate changes lead to international factors.The third chapter describes the exchange rate movements on the impact of China's capital market. The impact includes interest rates, stock prices, as well as the impact of Chinese commercial banks. It also introduces the accounting measures and strategies in the commercial banks face the exchange rate risk.The fourth chapter is devoted to the exchange rate changes on Chinese foreign trade enterprises and its financial accounting treatment, which described the exchange rate movements on exports, profits, net assets of the company and so on.The fifth chapter describes the strategy to deal with financial risks business. It is divided into the adjustment of the financial aspects, such as debt, capital scheduling method, the proportion of choice of law, added to preserve and increase the terms of the contract and insurance law; as well as the rational use of financial instruments to avoid exchange rate risks.