Valin Iron & Steel Group's Import And Export Business, Foreign Exchange Risk Management Study

The exchange risk management is a ancient and young topic, the foreign study on exchange risk management has a history of dozens of years, the exchange risk management is its one of the main business income to the bank, is the important cost, control means of the profit to the enterprise. in the developed country of the west, the tool of exchange risk management are already perfected and still in developing constantly very much.With the increase of the total economy gross and promotion of our international status, many enterprises which have rapid increase in import, export and international investment, have been turned into the pillar in the process of increase. However, since the firm exchange rate system or so-called controlled float exchange rate system we had taken for a long time in the past, most of the foreign currency risk had been screened out from the import and export of our enterprises owing to the narrow range of RMB rate. Companies' managers didn't pay enough attention on the rate risk. And it's unnecessary at that time either. But, with the rapid progress of internationalization and revolution and improvement of RMB rate mechanism, the rate risk arouse more attention and even influent the rise of the business development and increase of benefit of international companies. Under this circumstance, the intensive research on rate risk management with practical examples.This article seize the unique environment of Chinese enterprise, combine the import and export business of hunan valin iron and steel group co., ltd., research the hunan valin group thin sheet case, sum up a right verdict from history and situation of its exchange risk management, apply the right method for the practice of exchange risk manage of hunan valin group. At last, this paper discuss how to improve the condition of bank and government, create the right environment for Chinese enterprise.