Research On Measurement And Risk Control Of Foreign Exchange Risk In Household Appliances Industry

With the further development of the reform and the construction of the “Belt and Road”,more and more domestic enterprises have begun to enter the international market.At the same time,with the influence of the wave of internationalization and the acceleration of the internationalization of the RMB,China has experienced three major exchange reforms since 2000.After the exchange reform on August 11,2015,the central parity mechanism of the RMB against the US dollar was further marketed,which more truly reflected the relationship between foreign exchange supply and demand in the international market.The unilateral appreciation of the renminbi has thus been broken,and the two-way floating elasticity of exchange rates has increased significantly.For foreign-related enterprises,exchange rate fluctuations will increase the company’s foreign exchange risk,which is related to the immediate interests of the company.Therefore,domestic foreign-related enterprises should start to pay attention to the risks brought by exchange rate fluctuations,and establish a suitable foreign exchange risk management system according to their own characteristics,avoid foreign exchange risks as much as possible,and reduce the losses caused by exchange rate fluctuations.This paper draws on the research of foreign exchange risk in the early stage by domestic and foreign scholars.Firstly,it sorts out the definition,types and countermeasures of foreign exchange risk.Secondly,the overall status and export status of the home appliance industry,the existing problems of foreign exchange risk,and foreign exchange risk management countermeasures.Analyze.Secondly,we chose the case analysis troubles and introduced Gree Electric Appliance,the leading enterprise in the home appliance industry,as a case of this article.In the case study,we first sort out the existing risk exposure of Gree Electric and the existing foreign exchange management methods.At the same time,using the predecessor’s foreign exchange risk exposure measurement model,quantitative analysis of Gree’s foreign exchange risk,through Pearson test,regression analysis,etc.,to determine that Gree’s cash flow and stock price are not significantly affected by exchange rate fluctuations.The risk of achieving effective foreign exchange management.On this basis,this paper summarizes the foreign exchange risk management experience of Gree Electric Appliances,the strategy and method of purchasing foreign exchange derivatives from Gree Electric Appliances,and the overseas layout of Gree Electric Appliances,and draws on the company’s universal foreign exchange risk management experience.In addition,it puts forward the shortcomings of Gree Electric Appliances and home appliance industry in risk management,and discusses how the home appliance industry should better avoid risks in the future,so that other companies in the industry can refer it.