Borrowing investment method refers to enterprises with foreign exchange accounts receivable or accounts payable, which use borrowing investment to avoid foreign exchange risks. The borrowing method is used in the case of future foreign exchange income. After signing the contract, the exporter can borrow a sum of money from the bank with the same currency, amount and term as the future foreign exchange income, convert it into local currency in the spot foreign exchange market, and repay the loan with the foreign exchange income at maturity to avoid the risk of exchange rate fluctuation. When there is future foreign exchange expenditure, the investment method is used. After signing the contract, the importer can buy foreign exchange in the cash market in the same currency and amount as the foreign exchange to be paid, and put it into the short-term capital market, such as purchasing treasury bills, commercial bills, certificates of deposit, bank time deposits, bank acceptance bills, etc. Its investment period is the same as that of future foreign exchange expenditure. The investment law moves future payments to the present, while the lending law moves future income to the present, thus eliminating the uncertainty of exchange rate.

The principle of loan investment method is the same as that of eliminating the risks of foreign exchange accounts receivable and accounts payable, but the order of currency operation is different. The former borrows in foreign currency and invests in local currency; The latter borrows in local currency and invests in foreign currency. The loan investment method completely offsets the inflow and outflow of foreign currency and eliminates the foreign exchange risk.