What Are The Measures To Prevent Foreign Exchange Risk?

< p > > some commonly used methods in China are as follows: < /p >
< p > 1.; properly choose the currency used in the transaction < /p >.
< p > 1. In foreign economic transactions, if necessary and possible, local currency can be used as valuation settlement, < a href= "http://sjfzxm.com/news/index_cj.as" > currency < /a >. < /p >
< p >; in the case of foreign currency transactions, it is necessary to choose currencies that can be freely exchanged in the international a href= "http://sjfzxm.com/news/index_cj.as" > financial < /a > market, such as the US dollar, Japanese yen, etc. < /p >
< p >; in the convertible currencies, there are also differences between "soft" and "hard" in a certain period of time, that is, some are soft currencies which tend to depreciate, others are hard currencies that tend to appreciate. When choosing currency for trading, it should be a hard currency to earn foreign exchange for the purpose of appreciation, and to pay foreign exchange for soft currency that tends to depreciate. < /p >
< p >; because hard currency is beneficial to the payee or creditor in the international economic transaction, it is unfavorable to the paying party or the debtor; the use of soft money is unfavorable to the payee or creditor, but it is beneficial to the paying party or the debtor. Therefore, in the negotiation of foreign economic transactions, the two sides strive for the opposite goal. When the two sides are at a loss, they can make concessions to each other and adopt soft and hard currency matching schemes, so that they can shoulder risks together. < /p >
< p > 2.; adopt the method of allocation and liquidation < /p >.
< p > 3.; adopting foreign exchange protection clause < /p >.
There are two kinds of foreign exchange hedging terms: < /p > P.
< p > 1. When the trade contract is drawn up, the exchange rate will be fixed, and no matter what changes the exchange rate will take place, the exchange rate will be paid at the rate stipulated in the contract. < /p >
< p >; when signing a contract < a href= > //www.sjfzxm.com/news/index_s.asp > trade > /a >, the rate of exchange is not determined, but stipulates that both sides bear half of the loss when the exchange rate changes. < /p >
< p > 4.; using third country currency or "basket of currencies" the result of valuation is < /p >.
< p > 5.; using spot foreign exchange trading to guard against risks < /p >
< p > 6.; prevent foreign exchange risk by borrowing method < /p >
< p > 7.; using forward Forex trading to guard against risks < /p >
< p > 8.; using option trading to prevent foreign exchange risk < /p >
< p > 9.; using swap (hedging) transactions to prevent foreign exchange risk < /p >
< p > 10.; use "forfeine" (Forfaiting) business to guard against the risk of foreign exchange risk < /p >
< p > 11.; advance or postponed foreign exchange payment < /p >.
< p > 12.; participating in exchange rate fluctuation insurance > /p >
< p > 1. Decentralized management of debts. < /p >
< p >; reasonable management of creditor's rights structure. < /p >
< p >; the corresponding management of creditor's rights and debts. < /p >