1. Select or match pricing currency.
Paying attention to the changing trend of currency exchange rate and choosing a favorable currency as the pricing and settlement currency are fundamental preventive measures. In practice, we must consider comprehensively, grasp flexibly and really choose favorable currencies. You can eliminate the risk caused by exchange rate changes by pricing in more than two currencies. At the same time, we should pay attention to reasonable collocation, which can reduce the exchange rate risk.
2. Balance offset method of hedging
Balance method, also known as pairing method, includes two types: single balance method, which makes the currency of receipt and payment consistent and the currency of borrowing, use, receipt and payment consistent in foreign exchange transactions to avoid or reduce risks; Comprehensive balance method, in the transaction, multiple currencies are used, soft and hard currencies are combined, multiple currencies coexist on behalf of positions, and a single long position and short position are merged, so that long and short positions cancel each other out or various receiving and payment currencies are basically balanced in one cycle. This balance method is more flexible and effective than the single balance method.
Step 3 Use international credit
Foreign currency export credit is a business in which exporters immediately sell invoices, bills of exchange, bills of lading and other related documents to financial companies or professional institutions underwriting accounts receivable to collect all or most of the payment for goods, so as to obtain financing.
Forfaiting, the exporter gets the payment in time and converts the foreign exchange into local currency in time. It actually passes on two risks: first, it eliminates the time risk by selling forward bills to financial institutions and obtaining cash immediately, and it also eliminates the value risk by converting cash into local currency, so that exporters pass on the foreign exchange risk to financial institutions; Second, forfaiting is a selling behavior, and it also transfers the credit risk of non-payment by the due importer to financial institutions, which is also the biggest difference between forfaiting transaction and general discount.
Guaranteed payment agent, when exporters are uncertain about foreign exchange income, they often carry out secured payment agency business with factors. There are many ways to settle this business, and the most common way is discount. Because exporters can receive most of the payment in time, compared with collection settlement, it not only avoids credit risk, but also reduces exchange rate risk.
4. Carry out various foreign exchange businesses.
Spot contract law: refers to the method by which a company with foreign exchange creditor's rights or debts recently signed a spot contract with a foreign exchange bank to sell or buy foreign exchange, so as to eliminate foreign exchange risks.
Forward contract law: refers to the method by which companies with foreign exchange claims or debts sign contracts with banks to sell or buy forward foreign exchange to eliminate foreign exchange risks.
Futures trading contract law: refers to the method by which companies with forward foreign exchange debts or bonds entrust banks or brokers to buy or sell corresponding foreign exchange futures to eliminate foreign exchange risks.
Option contract law: Compared with forward foreign exchange contract law, it has more hedging effect. Because the forward method must be implemented at the exchange rate agreed at that time, the present value cannot guarantee the future value. The option contract law can make any choice according to the change of market exchange rate, that is, it can be fulfilled or not. Maximum loss of option fee.
Swap contract law: refers to a method that companies with forward debts or creditor's rights sign contracts with banks to sell or buy spot foreign exchange, and then buy or sell corresponding forward foreign exchange to prevent risks.
Interest rate swap: There are two forms: one is interest rate swap with different maturities, and its principle is shown in Table 5- 1, and the other is swap with different interest-bearing methods (usually fixed interest rate and floating interest rate).
Other measures to avoid risks: mainly including barter trade and early or delayed settlement of foreign exchange.