Strengthen risk awareness, Avoiding exchange rate risk, Help enterprises to expand and strengthen their foreign trade business

       With the deepening of market-oriented reform of RMB exchange rate, the two-way floating flexibility of RMB exchange rate will be further enhanced in the future, and foreign currency exchange rate risk will become one of the important risks for import and export enterprises. The leaders of the company attach great importance to how to resolve the risks brought by exchange rate fluctuations, realize the value maintenance and appreciation of foreign currency business, and minimize the exchange rate losses for the enterprise, so as to realize the exchange gains. On the afternoon of February 23, a team of five foreign exchange experts led by Wang Jin, manager of financial market department of Shandong Branch of Bank of China, and Ji Qinglong, manager of trading banking department, came to our company to conduct an on-site training meeting for all staff of foreign trade department and Finance Department of the company. The CFO of our company participated in the training.

       Manager Wang Jin analyzed the enterprise exchange rate risk management strategy under the current situation through a large number of data and cases. For the analysis and prediction of the future fluctuation trend of RMB exchange rate, the enterprise must strengthen the awareness of risk management and control, pay attention to the concept of exchange rate hedging, and realize foreign exchange hedging through natural hedging and transaction hedging. For enterprises, they should focus on physical business, balance currency allocation, manage exchange rate risk, and focus on improving foreign trade business.

       Manager Ji Qinglong introduced trade financial products and RMB cross-border settlement business in detail. Through the big data analysis of Shandong Branch of Bank of China, he gave four aspects of risk tips for enterprise contract signing, which greatly improved the company's employees' awareness of foreign exchange risk and practical operation skills of foreign exchange. The meeting also answered the difficulties and problems encountered by foreign trade and financial personnel in the actual operation of foreign exchange through on-site Q &A.

       Through the wonderful explanation of the two experts, all the staff members benefited a lot and the training achieved good results. After the meeting, the finance director Gao Shengye requires the finance department and the Ministry of foreign trade to work closely together, and, with the guidance of banking experts, to formulate a complete set of overall solutions for foreign trade business as soon as possible, covering all links and related products such as contract signing, trade financing, foreign exchange settlement and exchange rate risk avoidance. In combination with the actual operation needs of the company, comprehensive countermeasures are formulated to avoid the wind of exchange rate fluctuation Risk, reduce exchange rate loss, and maximize the profits of enterprises.