Research On Exchange Rate Risk Aversion Of Export Enterprises

With the economic globalization in the new century,more and more export-related or import-related enterprises encounter the international market to take part in the international trade competition.On August 2015,the reform of RMB exchange rate regime restarted.The new policy is is a more market-oriented exchange rate regime.In recent years,the trend of the RMB exchange rate has two-way fluctuations.With the fluctuations expanded normally and the following huge impact,finding their own actual situation to avoid exchange rate exposure are the urgent needs for many the international traded-related enterprises.There is no doubt that the exchange rate exposure has an essential influence on the international business.The fluctuation of exchange rate is linked to the benefits of all import-related and export-related enterprises.Exchange rate fluctuations directly affect the income of corporations,profit and cash flow from three aspects:transaction risk,accounting risk and operational risk.From a macro point of view,the new trend of exchange rate has changed the external market environment of import-related and export-related enterprises,and finally has a long and far-reaching impact on the operation and management of enterprise.This paper firstly elaborated the related theoretical concepts of exchange rate risk and aversion about it,with the study object of A Import and Export Co.Ltd.At the beginning,some relevant theory study results of exchange rate risk management at home and abroad were used for reference and then to start with operating management practices of Company A,for analyzing the external environment of them and their own conditions.And Delphi method was applied to the recognition of exchange rate risk faced by Company A,to analyze it from three aspects of transaction risk,translation risk and operational risk.The external and internal physical truth of the enterprise and RMB exchange rate trend in recent years were combined to analyze the main measures adopted by Company A for exchange rate risk aversion,which included trade financing,financial derivatives,operational control,and additionally,the principle,operational approaches,advantages and limitations of varies of risk-avoiding methods were discussed.The problems in terms of exchange rate risk control of Company A were found out by analysis.Furthermore,this paper put forward the countermeasures adopted by Company A to control their exchange rate risk from the perspective of business management.This paper propose utilizing earning management to control exchange rate risk.Through the research of exchange rate risk aversion pattern of Company A,the comments and suggestions for supervisor mode in the matter of exchange rate risk used by Company A were finally proposed pointedly;Company A was advised to apply system principle for the guidance of daily exchange rate risk management combined with their own business demands and risk management goals,to synthetically consider problems,enhance advantages yet avoid disadvantages,and flexibly choose to operate various kinds of exchange rate risk control strategies and instrument combinations.This paper contributed to a more scientific and well-performed exchange rate risk aversion model for Company A,which also could be utilized as the reference for other similar import and export enterprises in China,to promote the better development of the same-kind enterprises.