| Foreign exchange risk management is an important element in modern enterprise management, it is a systematic project, it is also an important control method of the enterprise cost and profit, its effectiveness depends largely on whether the participants of foreign exchange market developed scientific risk management strategies. In the developed Western countries, the tools of foreign exchange risk management have been more perfect, but it is still in development.With the accession to the WTO, China’s total economy has been increasing, her international status is also improving, the enterprise’s import and export business or international investment is also rapid growth and has become one of the important pillars in domestic economic growth. However, due to the implementation of the long-standing so-called fixed exchange rate system or a limited floating exchange rate system in the past, RMB exchange rate fluctuations is small, leading the foreign exchange risk of Chinese enterprises in foreign trade is shielded, the enterprise managers paid little attention to the issue of exchange rate risks, as if it has little necessity.However, with the speeding-up the process of the China’s internationalization and the reform and improvement of the RMB exchange rate formation mechanism, especially on July 21, 2005, the People’s Bank of China announcement, reforming the RMB exchange rate formation mechanism, establishing and improving a management floating exchange rate system on the basis of market supply and demand. Since then, the appreciation of the RMB against the U.S. dollar has accumulated more than 20 percent, and this year the trend of appreciation is to accelerate, the enterprise’s foreign exchange risks have become increasingly prominent, or even a serious impact on development of the business and raising of the profitability. Therefore, at this stage, according to the actual situation of enterprises, strengthening the foreign exchange risk management research has a great theoretical and practical significance.This article first expounds enterprise foreign exchange risk management on the theory, then grasping a unique environment that the China’s enterprises are facing, combining Shaogangsongshan’s actual import and export business, through the comparative analysis to the other enterprise’s risks of foreign exchange transactions business, and the research of its foreign exchange risk Position, on the basis of the realistic assessment of its existing foreign exchange risk management practices of the history and present situation, and forecasting its foreign exchange risk position in the next five years. Meanwhile, in order to improve the foreign exchange risk management, this paper in three areas has focused on the establishment of foreign exchange risk management framework, the enhancement of the enterprise’s operation and management, and implementation of foreign exchange risk prevention strategies, so as to putting forward the basic ideas for improving corporate foreign exchange risk management, the final part of this article is discussing the important external factors of foreign exchange business Risk management, such as the relevant impact from the Government and the banks, wishing that these institutions can create a good external conditions for enterprises in foreign exchange risk management.This article holds that in the background of the increase in foreign exchange rate fluctuations, if the enterprise develop a scientific risk management strategy in accordance with their own actual conditions and specific risk cases, planning ahead, choosing a suitable safe methods and tools, we will certainly gain a larger income against a smaller Cost in the foreign exchange risk management. |
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