The Research On Exchange Rate Risk Of Domestic Companies To Import Payment And Its Prevention

As of June2010to further the reform of RMB exchange rate fluctuations have become increasingly frequent, the exchange rate risk as an important issues which domestic companies engaged in the import business have to face. The import payment of foreign exchange risk prevention research has a more mature theoretical system, and the actual field in an attempt to have broad and deep, and our exchange rate risk prevention research is still at a preliminary stage, whether in theory or exchange market practice with the Western countries, there is a certain gap. Because China is a strict foreign exchange control countries, and the market is not mature enough level of economic development, which resulted in payment of foreign exchange for imports of risk prevention technologies can not fully meet the domestic companies.The author in a commercial bank engaged in international clearings in the actual work in contact with a lot of large import business but then the exchange rate risk perception is not enough attention is not high for the company. I chose to have a better exchange rate risk against the A chip manufacturing company conducted in-depth research, in this paper for A chip manufacturing company against exchange rate risk on the two classic cases do detailed data analysis and theoretical discussion. Proposed import payment of exchange rate risk against the key point is to establish a modern management system of foreign exchange risk prevention and the use of financial instruments, scientific management and accounting.This Paper Is Divided Into Six ChaptersChapter1Introduction. This chapter describes the background and significance of this study, research ideas and frameworks, research methods.Chapter2import payment of exchange rate risk of the status quo. This chapter describes the domestic and import payment of exchange rate risk research, and foreign exchange management system and development status of the domestic foreign exchange market.Chapter3theoretical analysis. This chapter for the exchange rate risk and exchange rate risks of import payment of the basic concepts, types were introduced.Chapter4Payment of domestic companies to import the main forms of exchange rate risk. This chapter describes the general risks of the company’s import payment of exchange rate risk and domestic companies the main forms and characteristics.Chapter5Case Study. A chip manufacturing company selected two classic cases, respectively, never use financial instruments to prevent the import payment of exchange rate risk of the traditional foreign exchange market practices and the introduction of new financial instruments to guard against exchange rate risk in order to achieve optimal financial costs of two new practices aspects to the discussion.Chapter6on the strengthening of domestic companies to import payment of foreign exchange risk prevention recommendations. This chapter were made to build a modern management system of foreign exchange risk prevention and the use of scientific management and accounting of financial instruments, etc. to prevent the country’s import payment of exchange rate risk.The Main Contribution Of This ArticleThis payment for domestic companies to import a systematic way to choose the classification of induction, and domestic financing of the current foreign exchange environment for the pro forma cost of financing for domestic companies to optimize the financial cost of import payment and exchange rate provides data to support risk prevention and theoretical basis. This exchange rate for domestic companies to manage risk prevention system also discussed, and proposed for the national conditions of China’s exchange rate risk management system.Need For Further Research DirectionsIn the current practice of payment for companies to import field data inference based on the exchange rate risk, to increase the company’s use of derivatives of the exchange rate risk prevention.