Study On Exchange Rate Exposure Management Of Gansu Bafangzhongye Limited Company

Since the reform of exchange rate in 2005, Chinese government began to release the former risk to the market, and companies started to take the risk of exchange rate by their own. Because small and medium enterprises have weak anti-risk ability and lack of professionals, so the foreign exchange risk have a huge shock on their export business with a result of significant reduction in profits. The exchange rate risk have a very significant impact for the production and operation of the enterprise. Therefore, the enterprise need to fully realize the importance and urgency of managing the exchange rate risk. And in order to realize the maintenance and increase of enterprise’s benefit, they need to manage exchange rate risk well.The research object of this paper is a small and medium private agricultural enterprise in Gansu province, China. Through practically analyzes the specific situation of enterprises, and highlights some management tools which are suitable for those enterprises. With the targeted exchange rate risk management, the goal of maximizing enterprise’s business benefits can be reached. At the same time, there is a hope that this paper can provide other SMEs with some inspiration on improving their foreign exchange risk management.This paper took the specific business as an example and studied the strategies of the exchange rate risk management. Firstly, it elaborated the writing background, significance of the topic, literature review, research and technology map; secondly, it define the core concepts and introduced the situation of related research in the domestic and foreign theory; thirdly, it analyzes the problems and impact of current exchange risk management business, it accordingly proposes to solve the problem of exchange rate risk management, this is the main part of the paper. At last, it makes a summary.