Foreign Exchange Strategy Of Chinese Commercial Banks Under The Background Of RMB Internationalization

Under the background of Chinese enterprises "going global" and the RMB internationalization, RMB has gradually become an important international currency in the international currency market. With a new round of RMB interest rate and exchange rate formation mechanism reform, RMB and foreign currency exchange rate pricing is gradually liberalized and more market-oriented. At present, the RMB exchange rate is no longer under unilateral appreciation or depreciation trend, but has entered the era of two-way volatility.By using Porter five forces analysis, the thesis focus on the process of RMB internationalization and its competitive environment, then make a concrete analysis to the commercial bank's foreign exchange and cross-border RMB internationalization strategy.With the SWOT analysis, the thesis analyzes the commercial banks' advantages and disadvantages, opportunities and challenges of the cross-border trade. By commonality and individuality analysis and in comparison with exchange and cross-border RMB settlement deals between Bank of China and other commercial banks, the major foreign exchange development strategy in the development of the foreign exchange operation and cross-border RMB operation were concluded. With case analysis of commercial bank under the background of RMB internationalization and two-way fluctuation of the RMB exchange rate, the thesis suggests that the commercial banks should design proper exchange and cross-border RMB products to adapt to the challenge of the RMB internationalization. This thesis summarizes the foreign exchange management in the exchange risk, then the foreign exchange risk prevention measures are discussed. Through the case analysis, the thesis comes to the conclusion that commercial banks should use a wide range of foreign exchange solutions to create suitable arbitrage foreign exchange products and help enterprises to avoid the risk of exchange rate fluctuations and reduce the cost at the same time so as to obtain the intermediate business income and achieve the purpose of the "win-win" situation.