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Foreign trade enterprises should pay attention to the expectation of RMB appreciation

Posted time:2021-11-08 Page View:1795

Foreign economic and trade university finance director of the institute ding by tsinghua university and jointly held a seminar on trade remit, and countermeasures for the effect of exchange rate appreciation on foreign trade industry, the RMB exchange rate appreciation will accelerate this year, may become the biggest appreciation since 2005 year, the appreciation of the renminbi will bring a series of structural impact, China's foreign trade import and export enterprises should strengthen exchange rate management, adopt appropriate business methods to cope with appreciation, and reduce the time and scale of foreign currency assets.

The central bank's interest rate hike on April 6 raised expectations of yuan appreciation. The yuan traded at 6.5440 to the dollar on April 6 at the China Foreign Exchange Trade Center, up 39 points from Friday's close of 6.5479. It rose as high as 6.5438 to the dollar, its highest intraday level against the dollar since it began trading in 1994.

Exchange rate risk is ubiquitous and takes many forms; At the same time, The risk management ability of Chinese enterprises is still very weak. In this regard, Ding Zhijie believed that Chinese foreign trade enterprises should strengthen the awareness of exchange rate risk management, enhance the skills of exchange rate risk management, minimize the size and holding time of assets denominated in local currency, reduce currency mismatch, increase foreign currency liabilities, reduce RMB liabilities, and choose a reasonable currency structure of assets and liabilities.