bankers said that the key for enterprises to avoid exchange rate risks is to choose reasonable hedging tools and products. These include directly locking exchange rate risks with counterparties through agreements, or selecting derivative hedging instruments of banks such as forward settlement and sale of foreign exchange and RMB swap business, using products such as trade financing, derivative transactions and time deposits, and even customizing personalized financial hedging schemes according to the needs of key customers.
Measures taken by Japanese enterprises to deal with foreign exchange risks
(1) Short-term measures
1. forex futures trading
The collapse of the Bretton Woods system in the 197s directly prompted the United States to introduce foreign exchange futures. In Japan, forex futures trading has been adopted by most enterprises to avoid financial risks. According to the statistics of Japan's Ministry of Economy, Trade and Industry, about 44% of Japanese enterprises will choose forex futures trading to avoid risks.
2. Expand settlement in Japanese yen
Foreign exchange risk mainly exists when foreign currency is used for foreign transactions. If domestic currency is used for settlement, foreign exchange risk can be avoided. Therefore, since the mid-198s, Japanese companies have been using Japanese yen to settle transactions, especially in terms of imports, and the settlement rate of Japanese yen has increased from 1% in 1986 to 25% in 24.
3. Balance of foreign exchange assets
In the mid-198s, many Japanese multinational companies began to set up financial operation companies in Europe and other places to manage and balance foreign exchange assets from the overall consideration of the company through hedging and adjustment of creditor's rights and debts. However, this measure is limited to multinational enterprises, and it is difficult to apply to small and medium-sized enterprises. Only 4% of enterprises in Japan take this measure.
4. Reverse trade balance
The appreciation of the yen is beneficial to imports but not to exports. Therefore, large Japanese companies with both export and import business, mainly general trading companies, have taken measures to reduce exports and expand imports to avoid the risks brought by the appreciation of the yen and maintain the company's profits. However, this method is also less applicable to enterprises, only about 4%.
5. Price Pass-on
Part of the increase in export costs caused by the appreciation of the yen is passed on to the price of export commodities, and some risks are borne by overseas importers. However, in the fierce market competition, this method is difficult.
(II) Medium-and long-term measures
Short-term financial measures cannot completely avoid foreign exchange risks, so we must start with medium-and long-term product structure adjustment. Japanese enterprises have taken measures such as increasing the added value of products and enhancing their competitiveness, so as to truly overcome the adverse effects brought about by the appreciation of the yen.
1. Adjust industrial structure, increase added value and enhance industrial competitiveness
First, increase added value of products through technological innovation and differentiation strategy. For example, Japanese TV sets have gone through the process of continuous upgrading of black-and-white TV sets, color TV sets, flat-screen TV sets and digital TV sets, and automobiles have also realized the transformation from Volkswagen cars to advanced cars and hybrid cars. Second, we should reduce production costs through technological innovation, increasing the import of cheap parts and reducing energy consumption.
2. Accelerate overseas transfer, strengthen overseas production system and expand multilateral trade
Make full use of the advantages brought by the appreciation of the yen, establish a global production system, increase the proportion of local parts procurement, cultivate local cooperative enterprises and expand multilateral trade. This can not only improve the resistance to exchange rate changes, but also establish a global internal division of labor system and promote the export of raw materials and parts. Japan's auto industry has outstanding performance in this respect. Since the 198s, Toyota and other Japanese auto companies have started to produce in the United States, which not only solved the trade friction between Japan and the United States, but also expanded the market share of Japanese cars in the United States. By 1995, the cars produced by Japanese auto companies in the United States had accounted for 2.7% of the American market share, while in 1985 this figure was only 2.%.