Guangxi Foreign Exchange Derivatives Market Investigation Report

After RMB exchange rate formation mechanism was reformed in July,2005, the fluctuation range of RMB exchange rate and the number of undefied factors, which cause exchange rate influctuation, constantly increase. Therefore, domestic financial institutions and enterprises need an impeccable foreign exchange derivatives market to manage exchange rate risk in such a complex economic environment. However, the status of foreign exchange derivatives market runs connter to the potential demands of international trade enterprises to control exchange risk, and the original intention of the establishment of foreign exchange derivatives market in China.Guangxi foreign exchange derivatives market started late. After the People’s Bank of China reforned RMB exchange rate formation mechanism reform, foreign exchange derivatives market in Guangxi developed fastly, experiencing from small to large, less to more, less normative to gradually standard. However, compared with developed countries and regions, Guangxi foreign exchange derivatives market is still far backward, whether from the market’s size of the transaction or the vanity transaction products, which can not meet the needs of the region’s economic and financial development. As more and more important role of the foreign exchange derivatives market in economic development of Guangxi, appropriate measures must be taken to accelerate the pace of the foreign exchange derivatives market development in Guangxi. thus investigation report takes the foreign exchange derivatives market in Guangxi as the research object, uses documentary, questionnaire, statistical analysis and other research methods, presents the current situation of the regional markets, analyzes the main problems of foreign exchange derivatives market in Guangxi, and then works out the report conclusion and points out the policy recommendations.