Consideration On China Foreign Exchange Risk Management In Foreign Trade

With the development of international trade and the deepening of the economic and financial reform in China, more and more domestic foreign trade enterprises are facing with international business competitions. After July 2005 exchange rate formation, China executive float exchange rate system. Under fluctuate exchange rate system, one country currency price is not gold evaluation, and exchange rate fluctuates according to market supply and demand. So it is urgent to study the methods used by foreign trade enterprises in controlling its foreign exchange risk and to learn how to apply these methods in the current environment.In a broad sense, the foreign exchange risk is comprehensive and complicated. This thesis, researching the narrow-sense current foreign exchange, namely exchange rate risk, aims for enhancing the ability of foreign trade enterprises in risk management. Firstly, this paper introduces some basic concepts and theory about foreign exchange risk and discusses the significance and exigency of study foreign exchange risk management in corporation of china. Secondly, this paper listed some gap analysis comparing with the international leading practice, and using for reference to the management in the commercial banks. Finally, based on the current status of international trade and exchange rate, this paper offers some solution to the China foreign trade enterprises of foreign exchange risk management.