The Research Of Exchange Rate Risk Management About HY(Xiamen) Import & Export Co., Ltd.

Along with China's rapid economic development and international environment change, the value of Yuan has appreciated substantially and its value is expected to continue rise. All of this gives China's small and medium specialized enterprises a great pressure—the increasing of exports risk, who mainly deal with foreign trade exports. For China's small and medium specialized enterprises during the international market competition, one of the important issues has to be solve, that is how to against exchange rate risk.Based on the summing up of the theory which concerning about exchange rate and exchange rate risk management, this article analyzed the following questions: characteristics of small and medium foreign enterprises, the exchange rate risks, the impact of exchange rate risks and current situation on management. Concerning the common problem of small and medium enterprises on foreign exchange rate risks management, (HY (Xiamen) Import and Export Co., Ltd. exchange rate risk management as the case) the article proposed exchange rate risk prevention programs both on export strategy and export business. This article also analyzing the company's export strategy, export contract terms and the use of financial derivatives in order to give a suggestion on the method of screening and optimization which be used against exchange rate risk.The innovation of this paper is providing a systematic solution for small and medium enterprises to prevent exchange rate risks.