In import and export trade, in order to guard against foreign exchange risks, the correct methods to choose the pricing and settlement currency are as follows: in export trade, "coins" or currencies with floating trends should be selected as the pricing currency; In import trade, we should choose "soft currency" or a currency with a downward trend as the pricing currency.

Valuation currency

1. Pricing currency refers to the currency agreed by both parties in the contract for calculating and paying off each other's creditor's rights and debts, which is generally the same as the settlement currency. If both parties only agree on the pricing currency in the contract, but not the settlement currency, then the pricing currency is the settlement currency.

2. Both parties to the transaction can also agree that the pricing currency is one currency and the settlement currency is another currency, even several other currencies. At this point, both parties to the transaction should specify the value of different currencies in the contract.

3. When choosing which currency to use, buyers and sellers should not only consider the currency exchange rate risk, but also make a comprehensive analysis according to their own business intentions, market supply and demand, price level, etc.

At present, the commonly used international settlement currencies in China are: US dollar, British pound, mark, French franc, Japanese yen and Hong Kong dollar. Theoretically, RMB can also be used as the currency for pricing or settlement, but China's financial management stipulates that the external use of RMB is limited to the book down payment and cannot be freely exchanged and flowed.

5. Generally speaking, the currency of the other country (region) or the currency of a third country is selected according to the change of currency exchange rate in the international financial market and the habits of the importing country (region).

: Choice of pricing currency

1. Select a freely convertible currency:

Freely convertible currency means that there are no restrictions on the payment and transfer of funds in international current transactions, and there are no discriminatory monetary measures or multi-currency exchange rates. You are obliged to exchange the national currency of the other country at any time when required by the other country. The use of freely convertible currencies is conducive to allocation and application, and helps to transfer currency exchange rate risks.

2. Try to use hard currency in export business;

Hard currency refers to the currency whose exchange rate is relatively stable and tends to rise from transaction to foreign exchange collection.

3, in the import business, efforts to adopt soft currency:

Soft currency refers to the currency whose exchange rate is unstable, weak and shows a downward trend from transaction to payment.