Research On Foreign Exchange Risk Management Of China Eastern Airlines

In the context of economic globalization,international trade has become increasingly prosperous,and the international environment has become increasingly complex.Changes in the international political environment,such as Brexit and the new Trump administration,have also had different effects on economic activities.On the domestic front,the People's Bank of China implemented exchange rate reform on August 11,2015,and adjusted the RMB exchange rate intermediate quotation mechanism to significantly reduce the exchange rate of RMB against the US dollar.The RMB exchange rate gradually increased and stabilized in 2017.The overall devaluation of the RMB exchange rate and other reasons caused the devaluation of the RMB to bring huge exchange losses to domestic airlines,which had a negative impact on the company's operating development.In this regard,foreign exchange risk management issues have gradually attracted the attention of airlines.This article selects China Eastern Airlines,which has a certain representative in the country,as the research object,analyzes the effectiveness of China Eastern Airlines' foreign exchange management,focuses on the analysis of the main problems in its foreign exchange management,and puts forward relevant feasibility suggestions on the problems.This paper expounds the framework of China Eastern Airlines' foreign exchange risk management,combines the theory of foreign exchange risk management,and adopts case study method,literature analysis method,and comparative analysis method to analyze the status and problems of foreign exchange risk management.Through research,there are four main problems with Eastern Airlines,including inadequate foreign exchange risk early warning identification mechanism,insufficient use of financial derivatives,ineffective financial hedging effects,large net US dollar debt exposure,and insufficient use of operating hedging.Risky.In view of the causes of its problems,this article puts forward several improvement suggestions,including the establishment of expert monitoring of foreign exchange risk early warning procedures,the reasonable selection and use of financial instruments,the flexible use of foreign exchange derivatives to avoid one-way exchange rate fluctuation losses,and expansion of domestic Financing channels,increasing aircraft leasing methods and diversified development to achieve operational hedging.By continuously improving each step and process of risk management,we believe that China Eastern Airlines can better respond to the current foreign exchange risks.