Research on Reducing Foreign Exchange Risks by Foreign Exchange Derivatives -- Taking China Foreign Trade Companies as an Example

Yuhan Ma

doi:10.18282/ff.v10i2.2240

Yuhan Ma Shanghai Lixin University of Accounting and Finance

Ariticle ID: 2240

133 Views, 15 PDF Downloads

DOI: https://doi.org/10.18282/ff.v10i2.2240

Keywords: Foreign exchange derivatives, Foreign exchange risk, Hedging, China Foreign Trade Corporation

Abstract

With the deepening of international trade, the foreign exchange risk exposure of foreign trade companies is gradually being valued in the international market, and foreign exchange risks are also the main risks that Chinese foreign trade companies need to avoid. This article analyzes the reduction of foreign exchange risks from both the internal and external aspects of the company, focusing on the value-preserving role of foreign exchange derivatives in transactions, and making suggestions for the steady operation of foreign trade companies.

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