Exchange rate fluctuations directly affect your final income people with deep experience in foreign trade , the other often occur when a single exchange rate , the balance due to the situation after another exchange rates. For manufacturing mainly for foreign trade business owners , as well.
Foreign exchange markets, including futures markets exist in the mind, is to help practitioners to hedge such risks . So foreign trade practitioners have this tool will be very beneficial . Unfortunately, the RMB is not a freely flowing settlement currency, the RMB currency forex platform no related to ( in fact Oanda and Saxo Bank have , but spreads very high ) , so for the dollar , and there is no good approach , but the yuan pegged to the dollar mainly implemented policies , so relative to other currencies, the U.S. dollar against the RMB exchange rate is not large , so in the short term , which can be done RMB into U.S. dollars hedging purposes.
Generally can take the following two strategies .
The first, to a transaction object. Consider the following case , due to the impact of the European debt crisis, faced with the rapid depreciation of the euro , assuming that within three months , the euro depreciated against the yuan from the 1:10 to 1:8 , that for a single 10W euro bill , the original can receive 1 million yuan , and ultimately only received 800,000 yuan , 200,000 yuan is a direct loss . Assuming During this time , the RMB against the U.S. dollar unchanged or very small ( most of the time so ) , what can we do?
You can head over the three-month euro forex market a hand against the U.S. dollar , as a hand- euro against the U.S. dollar value of the contract that is 100,000 euros , so I generally know that this empty one hand the profit is 200,000 yuan or so, we You can calculus follows:
For convenience, we will be the U.S. dollar against the RMB exchange rate constant at 1:5, the corresponding rates of change in Europe from 2.0000 to 1.6000 , a total decrease of 4,000 basis points. A little bit of Europe in one hand base value of $ 10, so this empty one hand a profit of $ 40,000 , that is 200,000 yuan .
But just in case someone asks how the euro rose to do ? For example, rose from 1:10 1:12 , so that this is not an empty one hand loss Mody. Yes, but appropriate , you can also gain from foreign trade list more than 200,000 yuan . So always two-phase offset . The effect of a single exchange rate that is "locked" in the deposit of three months each other before . So that you avoid the risk arising from exchange rate fluctuations . Its cost is spread and the overnight interest, and the opportunity cost of occupying a portion of funds generated ( in terms of the domestic firm is equal currency that one million yuan , in terms of the margin is 10,000 people, and taking into account the depth , the proposed account is required there are 100,000 yuan , in order to avoid exchange rate fluctuations and the reverse breakdown . )
Spread the cost of domestic plate for the 30 points , probably $ 300 , the outer disk is 2 points , $ 20 . ( But taking into account the disk is regulated , and the outer plate is regulation by foreign regulatory agencies , so face certain risks that can measure themselves ) . Interest , then firm should not be charged , deposit , and if short single one hand , about 3.5 dollars a day , 90 days is probably over 300 dollars look. These are the costs. If the exchange rate fluctuations will not feel too much , of course, you can choose not to avoid paying these costs. If you think it may be relatively large fluctuations , to pay these costs also have value .
Of course, in addition to this form , other situations can be considered, for example, options can be considered , but it may be more complicated to calculate the option a little , do not do repeat. Interested parties can study on their own.
The second strategy , the cycle just say consider more longer. That is, considering the future period of time, for example, trading volume may arise within a year , so the corresponding number of hands , in which case , you may need to pay the cost of more expensive. But the advantage is to avoid frequent price adjustment caused discomfort to the client . Because in the first strategy , after three months , if the customer orders again , may face price adjustment needed , otherwise we can not make money or even lose money. If you use the second strategy , of course, you can also tune , but another can give to the customer's commitment throughout the year such as our prices will not have a very big change , so that , compared to other businesses , it has produced a number of advantages .
These are some rough references , only to initiate it right .
