| In July 2005 a new round of China's exchange rate system reform, the central bank announced the abolition of the past on the single currency (USD) monetary policy began to gradually promote the basis of market supply and demand with reference to a basket of currencies, managed floating exchange rate system. By the end of 2013, with the rapid development of China economy, the RMB exchange rate constant a stronger RMB exchange rate against the dollar has appreciated 30%, reaching the highest value since the exchange rate reform in 2005 has a large number of foreign currency liabilities as the aviation industry company as many companies 6.05. during this period, seize the RMB appreciation opportunities, access to a large number of foreign exchange gains , reduce financial costs, increase profits. However, with the continued recovery of the U.S.economy, the people's Bank of China announced in August 11, 2015, the RMB exchange rate market reform further, through the adjustment of the RMB exchange rate against the dollar price of the middle price mechanism, adjust the currency to a basket of currencies in weight, make the RMB exchange rate parity to further market the reform of the exchange rate is constant. And the corresponding stage of China's economic situation,economic system combination, the exchange rate of the China better into the divided collaboration of globalization, the rapid development of China's economy plays a promoting role. Is that with the continuous change of the macroeconomic environment,but also increased the two-way fluctuation of RMB exchange rate, and the two-way fluctuation of RMB will have a huge foreign exchange gains and losses for those companies that have a large number of foreign currency net assets or net foreign currency liabilities, adverse changes in RMB will produce huge foreign exchange losses, thereby affecting the profitability of the business. The fluctuation of RMB exchange rate uncertainty also will increase the company's operating performance uncertainty.The aviation industry is a new mode of modern economic development, the aviation industry investment, the construction of the surrounding facilities, the upstream and downstream enterprises and regional economy, plays an important role in increasing employment, is of great significance for the rapid development of China economy.Especially in recent years the airline to accelerate the expansion of the pace a lot of, by the way of finance lease and the use of low interest loans to the United States dollar purchase of aircraft to expand its route and the airline business, ushered in the development opportunities of hitherto unknown, played an important role for the development of civil aviation transportation. The China in seize the opportunity of continuous expansion also increases The foreign currency liabilities, exchange rate fluctuations in the growing period, which will undoubtedly increase their exposure to foreign exchange risk, in recent years the airline due to exchange rate fluctuations resulting in a large number of exchange gains and losses,seriously affected the stability of performance. As the aviation industry company by the stability of operating performance of Chinese stable economic development also has a positive role. So the airlines in order to enhance the stability of the airline's competitiveness and performance,strengthen the exchange rate risk management in Airlines, identification and prevention of exchange rate risk is very important.The aviation industry is a typical export-oriented industry, has a major influence on the development of the RMB exchange rate fluctuations on the aviation industry. The airline business involves international business, foreign exchange risk is the inevitable process of business, foreign exchange risk will affect the stability of the flight performance, so for the foreign exchange risk management to decide the airline directly.In addition to the airline industry, other China company also has a large number of foreign exchange risk. These companies also issued a large number of dollar denominated bonds in a few years ago, and has a large number of dollars in debt,with the devaluation of the RMB these companies generally produce a large number of foreign exchange losses, net profit fell sharply with the RMB exchange rate. The volatility is increasing,the company's operating performance is also affected by large foreign currency exposure. Therefore, faced with China's foreign exchange risk exposure is more and more big, these companies need to pay more attention to the management of foreign exchange risk, foreign exchange risk and reduce the impact on the operating performance of the company.In my opinion, my paper choose these companies representative of the industry - the aviation industry, and then choose the airline with the representative of China Southern Airlines as an example, the use of financial statements for analysis, analysis of the structure of assets and liabilities of Southern Airlines and foreign currency liabilities due to net exposure effect estimates of the RMB exchange rate fluctuations on the exchange profit and net profit; and using qualitative analysis method to analyze the two-way exchange rate fluctuations, causes and Countermeasures of China Southern Airlines foreign exchange exposure, and proposes relevant suggestions according to the actual situation of the company. In order to give as aviation company face other foreign exchange risk must. Test and learn to help these companies to improve foreign exchange risk management measures and improve foreign exchange risk management awareness... |
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