Research On Foreign Exchange Risk Management Of Small And Medium - Sized Foreign Trade Enterprises In China

As China’s sustained economic development and strengthen degree of opening to the outside world, more and more enterprises to participate in international economic activities, at the same time, the people’s bank of China began to relax controls on its currency, put the RMB floating exchange rate system in practice, making more and more fluctuation of RMB. Foreign currency assets and liabilities which caused by the enterprises’ foreign trade business activities will assume greater foreign exchange risk, t he medium and small foreign trade enterprise for its ability to resist risks and risk management level is especially weak. Therefore, it is necessary to strengthen the exchange risk management of small and medium-sized enterprises, in the face of increasingly complex international trade situation.This paper aims to facing to the medium and small foreign trade enterprise foreign exchange environment analysis, the existence of the medium and small foreign trade enterprise foreign exchange risk management weaknesses and shortcomings, provides methods and some proposals for the foreign exchange risk management of China’s small and medium-sized foreign trade enterprises, to help our small and medium-sized foreign trade enterprises utilize resources reasonably and effectively avoid risks.The structure of the article, this article is according to the three steps of the management of foreign exchange risk. The first is the risk identification. The first chapter introduces the foreign exchange risk, foreign exchange risk management of the basic concepts and related basic content; and then introduced the situation of international trade environment and foreign environment which China’s small and medium-sized foreign trade enterprises are facing; thirdly, proposed the small and medium-sized foreign trade enterprises encounter problems and shortcomings, find out the risk of small and medium-sized foreign trade enterprises suffer from. The second is the risk measure. The introduction of VaR measurement methods, combined with the specific case of our small and medium-sized foreign trade enterprises risk measured by historical simulation method. It provides the basis for the enterprise to avoid the risk by quantify the risk faced by the enterprises. The last is risk aversion. A comparative analysis of the strategy to avoid the risk of enterprises, and puts forward some suggestions according to the problems in small and medium sized foreign trade enterprises.