From An Accounting Perspective, China's Foreign Exchange Risk Management

The paper in question comprises the study of exchange rate, the measuring of exchange rate exposure and the management of exchange rate exposure. The former two studies establishes the latter study,which are intimately related.When studying the exchange rate, the paper takes the cointegration indicators to select there factors: terms of trade, opening and M2/GDP, then estimates the RMB equilibrium exchange rate and concludes that RMB may not to rise in the medium-short term considering the interest rate and RMB exchange rate system,etc. When studying the measuring of exchange rate exposure, the paper estimates trading exposure and accounting exposure from an accounting perspective, mainly on the basis of analysis and measurement of financial statements and related accounting information, which could be easily available and more reliable, and designs the table of exchange rate exposure .The measuring of economic exposure mainly introduces the elastics-method. When studying the management of the exchange rate, the paper gives advises that one is from the internal control perspective, and the other, financial tactics under assistant of the table of exchange rate exposure.