To Build The Exchange Rate Risk Management System Applicable To Kazakhstan's Investment Projects

In recent years,with the background of "Going global" and "One Belt and One Road",the economic and trade communications between China and Kazakhstan have become increasingly closer,and the scale of China's investment in Kazakhstan has been steadily increasing.On the other hand,due to unfamiliar with policies,regulations and economic environment of Kazakhstan,many Chinese enterprises have suffered foreign exchange losses in their project investments.Kazakhstan's Tenge devaluated 8 times in history,which can be taken as a typical case study of exchange rate risk management.Although there are lots of literatures on management of exchange rate risk,there are few papers especially for Kazakhstan Tenge,mainly because the economic size of Kazakhstan is small;its Tenge is not the major currency in the world;the use of financial derivatives in Kazakhstan is subject to policy restrictionsThis paper begins with the background,the research goal,content and method of the thesis,and gives a brief introduction of the national conditions of Kazakhstan.Secondly,a review of the literature on exchange risk of Tenge in Kazakhstan is given.Based on the existing theories,a regression model is used to verify that four economic indicators have a significant impact on Tenge exchange rate.Based on these four major factors,it starts to analyze in practical the problems of exchange rate risk management in Chinese investment projects in Kazakhstan,then gives the introduction of a “regional headquarters” management system elaborated on how to monitor,analyze,and predict the main factors affecting Tenge's exchange rate,how to take countermeasures and centrally manage exchange rate risks.By comparing the financial data before and after the application of the "regional headquarters" management system,it was proved that the system can help Chinese companies investing in Kazakhstan to manage exchange rate risks.Finally,the characteristics and advantages of the exchange rate risk management system are summarized and referenced by all multinational corporations that invest in the “One Belt and One Road” for domestic investment.