Research On The Model Of Exchange Risk Avoidance Of A Export–Oriented Enterprise

In the early 1970 s, after the collapse of the Bretton Woods system, most countries in the world began to implement a system of floating exchange rate. The frequently changing monetary value caused and increased the exchange rate risk. On July 21, 2005, the People’s Bank of China announced to shift from a conventional dollar peg system linking the yuan only to the US dollar, to a managed floating exchange rate regime, which would be more market-oriented and adopt relevant adjustments of currency weights in a basket of foreign currencies. With the restart of China’s RMB exchange rate reform, especially in recent years, the greater two-way RMB fluctuation has become a new normal. The exchange rate risk is bringing about strong impact on China’s export enterprises, who urgently need to find a suitable risk-off mode.Firstly, this article had expounded the theories related to the exchange risk and the exchange risk avoidance. Through analyzing the advantages, disadvantages, opportunities, threats that A export- oriented enterprise was facing, dissecting the exchange risk’s influence on A export- oriented enterprise and the trend of the RMB exchange rate, this paper had elucidated that the exchange risk avoidance was necessary, important and urgent to A export- oriented enterprise. Through summarizing the literature research, recognizing and generalizing the main factors including changes in operating costs, exchange rate, and demand on the international market, which influenced the operation of the export- oriented enterprises, this article then consulted the risk’s influence, the questionnaire and the internal interview outline, also distinguished and analyzed the risk A export- oriented enterprise was facing by using the fuzzy comprehensive evaluation method, concluding that the exchange risk was the biggest risk for A export- oriented enterprise, through recognizing and sequencing the influence degree of the exchange risk, thus proposing the principles, countermeasures and suggestions to control the exchange rate risk. Taking advantage of the related theories on this basis, then summarizing the actual situation of the enterprise and the trend of the RMB exchange rate, the author presented the controlling methods of A export- oriented enterprise’s exchange risk to the point: the foreign trade finance, the financial derivative, the adjustment of foreign currency assets, the foreign debt structure, the adjustment of business strategies, and the international settlement tool. And author analyzed and expounded the principles of controlling, the usage, the advantage and the limit, then presented that A export- oriented enterprise should combine its business needs with the target of risk management, use systematic mind to guide the daily work of the exchange risk management, thinking over the work, then developing the strong points and avoiding the weak points, thus choosing flexibly to adopt the exchange rate risk controlling strategies and to use the tool set. Finally, A export- oriented enterprise used different exchange risk controlling methods, of which the result would verify the feasibility and the effectiveness of the related theories and methods, also summarized the ideas and methods of controlling A export-oriented enterprise’s exchange risk.