Research On The Exchange Rate Risks Of Overseas EPC Projects By Chinese Contractors

Along with the drivers of China's “Go-Out” policy and “One Belt One Road” strategy,Chinese contractors made a great progress in the numbers and scales of executing overseas EPC projects so far.But in this process,they were unfortunately suffered a lot from project margins due to their poor awareness of exchange rate risks and project management.In recent years,many studies were carried out to focus on the exchange rate risks of sole overseas projects instead of EPC projects.Hence,it's essential for them to have a deep study into the exchange rate risks so as to enhance the competitiveness of EPC projects in the world.With the rapid development of many projects executed by Chinese contractors and highly frequent fluctuation of exchange rate in international monetary market,a study was deeply made including,but not limited to,risk planning,identification,analyzing,controlling and monitoring in view of project risk management and exchange rate risks of the overseas EPC projects plus their own traits.Subsequently,a real case was analyzed from the aspects of transaction,translation and economic risks by means of identifying and countering with the potential risks of the overseas EPC projects.Eventually,some specific suggestions are proposed to effectively manage and control exchange rate risks of the aforesaid projects executed by Chinese contractors.