Study On Exchange Rate Volatility Hedging Policy Of Minor Export Enterprises

With the increasingly fierce competition in the international market,and the high cost of domestic production,the volatility of RMB exchange rate has become an important factor which fluctuations affect the survival of China’s export enterprises.After more than a decade of exchange rate reform,the RMB exchange rate not only gradually becomes the trend of two-way from the one-way appreciation or depreciation,but also the daily huge fluctuations have become normalized.RMB exchange rate risk has an important impact on the export enterprises business operation and profits.Faced with the new foreign exchange market,China’s export enterprises must strengthen the effective management of exchange rate risk,minimize or avoid losses caused by exchange rate fluctuations.Taking A company as the research object,according to the traditional types of exchange rate risk faced by export enterprises and the trend of RMB exchange rate fluctuations in recent years;This paper analyzes the exchange rate risk brings to export enterprises the positive effect of increasing export earnings,improving export enterprises independent innovation and patent protection awareness.Meanwhile,the author also analyzes a series of negative impact on export enterprises caused by the exchange rate risk:reduces the number of order,compresses the export profit margins,restricts the business activities of export enterprises and increases the competitive pressure of export enterprises.On the basis of affirming the effectiveness of existing hedging measures adopted by A company,while this paper sums up some problems in these measures.To solve these problems,from strengthens the enterprise management and financial management,utilizes operational hedging and financial hedging.The paper puts forwards some countermeasures and suggestions on the exchange rate risk management of export enterprises.