A Research On City Commercial Banks Trade Finance Products Exchange Rate Risk Management

At present, the world’s major currencies such as the U.S. dollar against the RMB volatility, western countriescurrencies continued to depreciation, the RMB appreciation is expected to heat up,its appreciation trend isuncontrollable. Trade finance business has become a financial institution to enhance the core competitiveness ofthe city commercial banks mainly business of international business of small scale, interest rate risk measurementmethod of trade financing business is simple and traditional, the exchange rate risk management methods can notadapt to the complex and changeable market environment.In view of this, this article for the current complex andvolatile foreign exchange and financial situation, the use of a combination of theoretical and practical researchmethods for the study of M Bank, its international trade finance business in the face of foreign exchange riskin-depth analysis and discussion, puts forward the corresponding countermeasures and suggestions.The main content is as follows: firstly, introduces the research background and significance, research ideasand innovation, and comments on the theory of trade financing theory and the theory of exchange rate riskmanagement. Then, the paper has carried on the analysis to the current situation of exchange rate risk in tradefinancing products of city commercial banks, starting with the formation and influence factors of exchange raterisk, foreign exchange risk analysis focuses on the city commercial bank common trade financing products. Andthe typical M city commercial bank’s trade financing business focuses on analyzing the present situation andproblems of foreign exchange risk management, studied the distribution of its foreign exchange risk, themeasurement method of the degree of risk, and highlight its characteristics and existing problems of foreignexchange risk management. Finally, through the above analysis, the existing problems of city commercial banksand how to a short period of time to effectively prevent and management of international trade financing riskpresents specific measures. In this paper, taking M bank as the carrier, has conducted the research to theinternational trade financing risk from the bank foreign exchange risk management perspective, has importanttheoretical and practical significance, not only can enrich the risk management of international trade financingtheory, equal sample has important reference and guidance significance for the practical operation of citycommercial banks.