RMB exchange rate flexibility enhances, enterprises should change linear thinking

category:Finance
 RMB exchange rate flexibility enhances, enterprises should change linear thinking


The baptism of the market is the best investor education. In recent years, with the increasing flexibility of RMB exchange rate, many enterprises pay more attention to the rational use of financial instruments to hedge the exchange rate risk, such as adopting the strategy of settlement and sales of foreign exchange at high prices and buying foreign exchange on the low side, and using exchange rate hedging tools such as forward foreign exchange sales to avoid the financial risks caused by exchange rate fluctuations. The exchange rate expectations of market entities are more rational and moderately differentiated, and there is no consistent unilateral expectation of rise and depreciation. The situation of using exchange rate hedging tools as speculative arbitrage tools is significantly improved.

However, the change of market concept is a gradual process, and some enterprises still need to enhance their awareness of exchange rate risk prevention. Enterprises should keep up with the new changes of exchange rate situation in time, pay attention to the general trend of two-way fluctuation of exchange rate, establish risk neutral concept, do a good job in risk assessment and prevention, carry out appropriate hedging on exchange rate exposure, control currency mismatch as far as possible, and reasonably arrange the currency structure of assets and liabilities.