Research On Exchange Rate Risk Management Of Small And Medium-sized Export Enterprises In China

The formal reform of RMB floating exchange rate system in China was in July 2005.The monetary authorities formulated a floating exchange rate system based on market supply and demand,which made the export enterprises of our country face more and more exchange rate fluctuations in their daily foreign economic activities.However,due to the long-term foreign trade under the relatively fixed exchange rate regime,Chinese enterprises do not have a strong understanding of the risk of exchange rate fluctuation and a weak sense of risk,and do not have an effective and reliable exchange rate risk management system.Based on the above realistic background,this paper analyses and discusses the exchange rate risk management of small and medium-sized export enterprises according to the current situation of exchange rate fluctuation in China.Firstly,the paper elaborates the background and significance of the research,the research status at home and abroad,and paves the way for the full text analysis by introducing the types of exchange rate risk and its impact on SMEs in detail.Secondly,combined with the current economic environment of our country,we analyze the difficulties faced by small and medium-sized export enterprises under the background of large exchange rate fluctuations and the problems and shortcomings exposed at the beginning.At present,China's small and medium-sized export enterprises are in a passive position in export,leading to small and medium-sized export enterprises facing exchange rate risk often appear helpless.This paper also uses a case to analyze how traditional small and medium-sized export enterprises deal with exchange rate risk.On the basis of empirical analysis,this paper analyses the causes of this phenomenon.Finally,the paper puts forward the Countermeasures of exchange rate risk of small and medium-sized export enterprises in China,and gives opinions and suggestions from many aspects.In view of the problems of single hedging mode and lack of management tools in dealing with exchange rate risk of small and medium-sized export enterprises in China,this paper proposes that measures for small and medium-sized export enterprises to avoid exchange rate risk should start from realizing industrial upgrading,optimizing exchange rate risk management system of small and medium-sized export enterprises,and using derivatives as a tool to control exchange rate risk.It is of great significance for export enterprises to cope with exchange rate risks and improve their competitiveness in the international market.