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Control of foreign exchange risk exposure


  Multinational enterpr cashback forexes to carry out the control of forexrebateclub cashbackforexexness cashbackforexbroker exposure, should first system to develop the objectives forex rebate club strategies of foreign exchange risk management, and then according to the different management objectives, decide on which type of foreign exchange risk management to focus on If the objectives of enterprise foreign exchange risk management focus on short-term interests, then efforts should be made to reduce the companys recurring business activities caused by transactions and If the goal of enterprise foreign exchange risk management is to maximize the companys assets, operating results and long-term interests of shareholders, then the prevention of economic risk exposure as a top priority   1. Control of transaction risk and commutation risk exposure   Control of transaction risk and commutation risk To control, so that the possible loss to a minimum, the main use is the preservation of technology, mainly forward foreign exchange market preservation, currency market preservation, early and delayed payment and other methods    1) no term foreign exchange market preservation refers to the two sides of the transaction by signing a forward contract or agreement, to determine the future of a specific date of foreign exchange transactions selected by the exchange rate so that the company In the due to receive, pay foreign exchange, will not suffer losses due to exchange rate fluctuations   2) money market preservation money market preservation is also used in the form of a contract, but here the contract is a loan contract, rather than a futures contract use of money market preservation not only involves the exchange rate factor, but also includes the interest rate factor use of money market preservation is to borrow foreign currency at a certain interest rate Here, it is important to note that the maturity of the loan and the maturity of the deposit should be consistent with the repayment of the principal and interest of the foreign currency loan at maturity, while collecting the principal and interest of the deposit in the national currency   3) Early and delayed payment The use of early and delayed payment means to avoid foreign exchange risk can be used for internal units of multinational companies, but also for between mutually independent units in the internal units of multinational companies using advance or deferred means, the purpose of which is to enable liquidity to serve the combined interests of the entire company more effectively   2, the control of economic risk exposure   For the control of economic risk exposure is an important management of technical and economic risk decisions Involved in production, sales and finance and other departments to control economic risk is mainly production and operation as far as possible to take diversification policy through production diversification (mainly including product types, specifications diversification, diversification of raw materials and components supply sources), sales diversification (products into different countries or regions of the market, using different sales conditions, diversified pricing strategy), financial diversification ( The companys policy is to minimize the foreign exchange risk that may arise by raising a variety of funds from the capital market, establishing ties with a variety of funds, and establishing ties with a variety of currency systems, so that the adverse or favorable effects of the various parties involved can offset each other.

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