Research On Trade Enterprises To Deal With Exchange Rate Risk Defending And The Adopted Measures

The exchange rate risk is most important issue to Business China’s exportenterprises. Especially most trade company that impacts significant by theinternational economic situation change. China to start the Department of2005years.The RMB from fixed value change to the floating exchange rate system.Asevery day the rate is changing,thus the payment and collection is existence by thetime difference when was signed contract.These rate changing have created rate riskand uncertainty to the company.At the same time the change of exchange rate is alsoimpacted by the international political economic factors act.Therefore Tradeenterprise have to be consider of exchange rate risk.THM have to face the risk of floating exchange rate when growing and developinginto international strategic road. Because of the RMB against the US dollar currencyreform from8.3:1to6.3:1THM had a exchange loss20%to30%than before. Alsocosts have been rise has made THM less competitive in the International Marketing.So the company combined with exchange rate risk management theory to find suitableapplication avoid the risk of exchange rate.Exchange rate risk is directly relatedexport enterprise of operation and development. This thesis mainly studies theanalysis of development and export situation to the THM company. Especially focuson analysis of past five years the impact of RMB appreciation to THM company andcombining with exchange rate management theory put forward some suggestion totake preventive avoid exchange risk.This paper take for example the present new financial instrument networkprovides specific guide take preventive avoid exchange risk.