Analysis Of How To Prevent And Control Exchange Rate Risk For Chinese Logistics Enterprises

With exchange rate reform is effective on21Jul.2005in China, and with China’s economicdevelopment, more and more logistics enterprises have been facing exchange rate risk in theprocess of economic integration in the world. Contrasting with logistics enterprises in developedcountry, at how to prevent and control exchange rate risk field, Chinese logistics enterprises nowdrop behind with a large gap. How to prevent and control effectively exchange rate risk is becominga more important issue for domestic logistics enterprises. An effort has been taken in this paper toreview the researches of exchange rate risk causes and exchange rate risk prevention and controltheory. Then, this paper introduces the actuality of domestic logistics enterprises facing exchangerate risk and measures have been taken by them according to domestic logistics enterprises industrycharacteristics, with the intensification of exchange rate reform and rapid economic development inChina, more and more domestic logistics enterprises aware of exchange rate risk and many of themare taking effective measures to prevent and control exchange rate risk. Last but not least, byintroducing DS international logistics company main business and exchange rate risk faced, DSinternational logistics company had faced severe exchange rate risk before year2008. With DSinternational logistics company management paying more attention to exchange rate risk, severaleffective measures are been taking and get good results, such as setting Netting. On basis of DSinternational logistics company analysis, measures preventing and controlling exchange rate risktaken by DS international logistics company are meaningful reference. Because every logisticsenterprise has itself business features, each logistics enterprise may take different measures toprevent and control exchange rate risk. In fact, these measures are just similar, not same.With the continuous development of China’s financial industry, financial derivatives arebecoming completely and more popular with Chinese logistics enterprises, and Chinese logisticsenterprise will be facing more choices and will get more effective results when preventing andcontrolling exchange rate risk.