Bank foreign exchange risk enterprise foreign exchange risk
Trading risk
Accounting risk
Economic risk
operating risk
1, foreign exchange trading risk
Banking and foreign exchange transactions
Trading on behalf of customers
2. Foreign exchange credit risk: the risk brought to the bank by the default of all parties in foreign exchange transactions.
3. Liquidation risk
National foreign exchange reserve risk
The risk that the devaluation of reserve currency will lead to a country's total foreign exchange reserves. It mainly includes the national foreign exchange inventory risk and the national foreign exchange reserve investment risk. Since 1973, the floating exchange rate system was implemented by the international community, foreign exchange reserves of all countries in the world are facing the same operating environment, that is, the reserve currencies are diversified, the reserve currencies are mainly US dollars, and the exchange rate of reserve currencies including US dollars fluctuates greatly. In this way, the foreign exchange reserves of various countries are facing great risks. As foreign exchange reserves are the most important part of international liquidity and an important symbol of a country's national strength, once the risks faced by foreign exchange reserves become a reality, the consequences will be very serious. From the perspective of its fields, foreign exchange risk can be roughly divided into two categories: commercial exchange rate risk and financial exchange rate risk.
Commercial exchange rate risk: Commercial exchange rate risk mainly refers to the possibility of people suffering losses due to exchange rate changes in international trade, which is the most common and important risk among foreign exchange risks.
Financial exchange rate risk: Financial exchange rate risk includes credit and debt risk and reserve risk.
Bank foreign exchange risk classification 1. The main capital security in foreign exchange
The security of funds is the most important issue in the transaction. Because foreign exchange speculation is not guaranteed by a settlement institution, the margin for customers to buy and sell foreign exchange contracts is not protected by any regulatory agency and does not enjoy bankruptcy priority; When the broker goes bankrupt, the client's funds are not protected. According to the provisions of the bankruptcy law of the United States, stock customers or commodity customers have the priority to pay off their creditor's rights, so it is very likely that they will keep all their funds when the securities firm goes bankrupt. However, since foreign exchange spot is neither a stock nor a commodity, foreign exchange spot customers are neither stock customers nor commodity customers. It is precisely because of the lack of legal status that they can only enter the bankruptcy liquidation procedure as unsecured creditors, which may lead to the total loss of their money.
2. Risks of the market itself
Because the foreign exchange market operates 24 hours a day, there is no upper or lower limit for the fluctuation of exchange rate, so when the fluctuation is severe, it may be a month or even months for a few hours a day. Because the foreign exchange trend is influenced by many factors, no one can accurately predict and judge the foreign exchange trend. When holding a position, any unexpected exchange rate fluctuation may lead to a large loss of funds, or even little left.
3. High leverage brings high risks
Although every kind of investment has risks, foreign exchange transactions use the capital leverage model, which also magnifies the amount of losses. Especially in the case of using high leverage, even if it is slightly different from your trading trend, it will bring huge losses, even including all the opening funds. Therefore, try to use the funds beyond the necessities of life, that is to say, even if these funds are completely lost, it will not have a major impact on your life and finances.
4. Network transaction risk
Although the telephone trading system is available in all major traders, the main trading mode of foreign exchange secured transactions is realized through the network. Due to the characteristics of the Internet itself, it often leads to the situation that traders can't connect. In this case, customers can't place orders, or even stop at their own pace, which also leads to many unexpected losses. However, traders are not responsible for this, even if there is a problem with their own trading system. Similarly, the firm transaction of domestic banks also avoids such risks, which is clearly stated in the transaction account opening book. Therefore, choosing a suitable dealer to open a foreign exchange account can greatly reduce your trading risk.
In addition, whether it is domestic speculation or foreign exchange margin trading, it is very common to trade at a specific time (unable to connect to the trading system of securities firms), so traders should avoid and understand this phenomenon in advance.
Bank foreign exchange evasion method The foreign exchange transaction risk of an enterprise is related to the settlement of foreign exchange in specific transactions, which refers to the loss caused by the reduction of the amount converted into local currency due to exchange rate changes during various transactions in foreign currency. Various transactions include: commodity or service transactions conducted by credit, foreign exchange lending transactions, forward foreign exchange transactions, foreign exchange investments, etc. Transactions can also be divided into completed transactions and unfinished transactions. Completed transactions are items listed in the balance sheet, such as accounts receivable and accounts payable expressed in foreign currency; Unfinished transactions are mainly off-balance-sheet items, such as future purchases, sales, rents and expected income and expenses expressed in foreign currencies.
Internal prevention
The internal technology of technology transaction risk prevention refers to the methods adopted by enterprises to prevent and reduce foreign exchange risks. Before signing a trading contract, measures should be taken to prevent risks, such as choosing a favorable pricing currency and adjusting commodity prices appropriately.
Balance sheet adjustment method. Assets and liabilities expressed in foreign currencies are easily affected by exchange rate fluctuations. The change of currency value may lead to the decrease of profit or the increase of debt after conversion into local currency. Asset-liability management is to rearrange or convert these accounts into currencies that are most likely to maintain their own value or even increase their value. The core of this method is: try to hold coin assets or soft currency debts. Compared with the local currency or another base currency, the value of coins tends to be constant or rising, while the value of soft coins tends to decline. As a part of normal business, the implementation of asset-liability adjustment strategy is conducive to enterprises to take natural preventive measures against transaction risks. For example, in the lending law, when an enterprise has accounts receivable expressed in foreign currency, it can borrow a foreign currency fund equal to the accounts receivable to prevent transaction risks.
Choose a favorable pricing currency. The size of foreign exchange risk is closely related to foreign currency, and the foreign exchange risk will be different with different currencies of receipt and payment in the transaction. In foreign exchange receipts and payments, in principle, we should strive to collect foreign exchange in hard currency and pay foreign exchange in soft currency. For example, in import and export trade, we strive to use soft currency for import payment and hard currency for export collection; When borrowing foreign capital, try to borrow soft currency, which is less risky.
Add a currency protection clause to the contract. At the time of transaction negotiation, appropriate hedging clauses shall be concluded in the contract through negotiation between both parties to prevent the risk of exchange rate fluctuation. There are many kinds of currency hedging clauses, and there is no fixed model. But no matter what hedging method is adopted, as long as both parties agree, the purpose of hedging can be achieved. There are mainly gold preservation and hard currency preservation. A basket? Currency preservation. At present, hard currency hedging clauses are generally adopted in contracts. There are three points to be paid attention to when concluding such hedging clauses: first, it is necessary to clearly agree on the currency to be paid when the payment is due; Secondly, choose another hard currency to preserve value; Finally, indicate the spot exchange rate of the settlement currency and the hedging currency at the time of signing the contract in the contract. If the depreciation of the settlement currency exceeds the scope stipulated in the contract, the payment will be adjusted according to the new exchange rate between the settlement currency and the hedging currency, so that it is still equal to the original amount of the hedging currency converted in the contract.
Adjust the value of commodities appropriately. In import and export trade, it is generally necessary to adhere to the principle of receiving currency for export and paying soft currency for import, but sometimes for some reasons, exports have to be traded in soft currency and imports in hard currency, so there are foreign exchange risks. In order to prevent risks, price adjustment method can be adopted, which mainly includes price increase method and price reduction method.
Prevent transaction risks through risk allocation. Refers to the risk sharing caused by exchange rate changes between the two parties according to the signed agreement. The main process is to determine the basic price and exchange rate of the product, determine the method and time to adjust the basic exchange rate, determine the range of exchange rate change according to the basic exchange rate, determine the proportion of exchange rate change risk shared by both parties, and adjust the basic price of the product through consultation according to the situation.
Grasp the time of receipt and payment flexibly and guard against the risk of foreign exchange transactions. In the rapidly changing international financial market, early or late payment will have different benefits and influences on foreign trade enterprises. Therefore, enterprises should flexibly grasp the time of receipt and payment according to the actual situation. As an exporter, when the denominated currency is firm, that is, the exchange rate is on the rise, the later the collection date is, the more exchange rate gains can be received. Therefore, the enterprise should delay the delivery as much as possible within the performance period stipulated in the contract, or provide credit to the foreign party to extend the export bill period. If the exchange rate shows a downward trend, we should strive to settle foreign exchange in advance, that is, speed up the performance of the contract, such as collecting foreign exchange in advance before the shipment of goods. Of course, this can only be done on the basis of mutual consent. On the contrary, when an enterprise acts as an importer, it will make corresponding adjustments. Because using this method, the interests of the enterprise are the losses of the foreign party, so it is not easy to be accepted by the foreign party. But enterprises should understand this, on the one hand, they can avoid the risk of foreign exchange collection when conditions permit, on the other hand, they can prevent the risk from being passed on to our enterprises.
External management technology
In addition to internal management technology, enterprises also have many external hedging tools to choose from, such as forward foreign exchange contracts and foreign exchange options trading. Developing foreign exchange trading is a practical, direct and scientific method.
Prevent trading risks through forward foreign exchange trading. When conducting forward foreign exchange transactions, enterprises sign contracts with banks, which stipulate the name, amount, forward exchange rate and delivery date of the currency sold by the buyer. The exchange rate remains unchanged from signing to delivery, which can prevent the risk of future exchange rate changes. A variant of forward foreign exchange trading is a forward contract with date options, which allows enterprises to conduct foreign exchange trading on any day within a predetermined time range. Of course, the forward foreign exchange transaction itself is risky, and whether an enterprise can avoid losses and gain benefits depends on whether the exchange rate forecast is correct. At the same time, forward foreign exchange transactions not only avoid the risk of unfavorable exchange rate changes, but also lose the profit opportunities brought by favorable exchange rate changes.
Preventing trading risks through foreign exchange option trading. The so-called foreign exchange option is a contract signed by both parties to the foreign exchange option transaction in advance on whether to buy or sell a certain currency in the future at the agreed exchange rate. The foreign exchange option contract gives the option buyer the right, but has no obligation. Options are divided into call options and put options. For hedgers, foreign exchange options have three incomparable advantages over other hedging methods. First, limit the foreign exchange risk to option insurance premium; Second, keep the opportunity of profit; Third, it enhances the flexibility of risk management.
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