How To Avoid The Negative Impact Occurring By FX Risk

After enforcing the reforming and opening policy from1979, more andmore Chinese enterprises entered global market and achieved a sharply jumpin importing and exporting. Because of the diversity of trading currency andFX rate policy of China, most of such enterprises have to face to the riskoccurring from the FX rate floating. This thesis analyzed the foreignexchange risk and FX derivative tool and jointly researched of actuallypractices of UAES. Three achievements were got from the researching.Firstly How to establish a effective strategy for avoiding FX risk. Secondlydecided correct account treatment in hedging business. Thirdly how to fixedcost or income by using the FX derivative tool which provided by domesticfinancial market, so that to avoid FX risk and improve the operatingperformance.