The Impact Of RMB Internationalization On The Exposure Of Foreign Exchange Risks Of Enterprises

After the exchange rate reform in 2005,the RMB began to shift from a fixed exchange rate system that anchored the US dollar to a floating exchange rate system that fluctuated between two directions.Domestic companies were starting to face more and more exchange rate risk.How to effectively measure and reduce the foreign exchange risk exposure faced by companies becomes an important issue that we must continue to pay attention to.This article summarizes and analyzes previous research results,uses 397 listed companies as research sample companies,and 2010-2016 as sample time intervals to study how to accurate measure foreign exchange risk exposure and which factors affect the company's foreign exchange Risk exposure and how to effectively reduce the company's foreign exchange exposure.After a comparative analysis of empirical results,based on the AD model,Jorion model,Chue&Cook model,and Fama three-factor model,we constructed a market model that can reflect Chinese characteristics and measure the level of exposure of foreign exchange companies more accurately.The results showed that 99%of the selected sample companies exhibited significant foreign exchange exposure.The year 2010 is the first year of internationalization of RMB,and the RMB has taken the path of becoming a world currency.Therefore,in the research of the factors that affect the foreign exchange exposure,we not only considered the traditional factors such as the characteristics of the enterprises,the scale of the enterprises,the international the level of transformation and the level of corporate foreign exchange risk management,but also take into account a new influencing factor:the degree of RMB internationalization.The empirical results show that the internationalization of the RMB has a significant positive impact on the exposure of the company's foreign exchange risk,which shows that companies face enormous foreign exchange risk management issues in the process of RMB internationalization.The degree of internationalization of enterprises,return on net assets,turnover rate of net assets,and foreign exchange risk management of enterprises also have a significant impact on the exposure of foreign exchange risks of enterprises.This provides a means for companies to reduce their exposure to foreign exchange risks.In the further study of the influencing factors,we found that the foreign exchange exposure of the company showed a significant industry characteristic.The manufacturing industry had a lower exposure to foreign exchange risk than the non-manufacturing industry.This indicates that the company has a certain degree of cross-industry operations.It will help reduce its foreign exchange exposure.The study also found that the degree of internationalization of enterprises and the use of foreign exchange derivatives have a negative impact on foreign exchange risk exposure of enterprises.Actively conducting multinational operations and foreign exchange risk management is another effective means to reduce the exposure of foreign exchange companies.Finally,we synthesized the full study of the research results,and we provide the corresponding policy recommendations from the government level and the enterprise level,hoping that both sides can perform their duties,jointly reduce the level of exposure of foreign exchange companies to protect the health and sustainable development of Chinese enterprises.