2. Choose a favorable pricing currency.
3. Make a currency hedging clause in the contract.
4. Adjust the commodity value appropriately.
5. Prevent trading risks through risk allocation.
6. Grasp the payment time flexibly to prevent foreign exchange trading risks.
1. Asset-liability 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 hard currency assets or soft currency debts. Compared with the local currency or another base currency, the value of hard currency tends to be constant or rising, while the value of soft currency 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 you have accounts receivable expressed in foreign currency, you can borrow foreign currency funds equal to the accounts receivable to prevent transaction risks.
2. Choose a favorable currency for pricing: the size of foreign exchange risk is closely related to foreign currency, and the foreign exchange risk will vary with the currency 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.
3. Establishing currency hedging clauses in the contract: In the process of transaction negotiation, appropriate hedging clauses should be established 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 hedging, hard currency hedging and "basket" currency hedging. At present, hard currency hedging clauses are generally adopted in contracts. There are three points to note when making such hedging clauses. First, it is necessary to clearly stipulate the currency that should 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. ：
4. Appropriate adjustment of commodity value: In import and export trade, we should generally adhere to the principle of exporting hard currency and importing soft currency, but sometimes for some reasons, exports have to be traded in soft currency and imports have to be traded 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.
5. Preventing transaction risks through risk sharing: it means that both parties to the transaction share the risks brought by exchange rate changes 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.
6. Grasp the time of collection and payment flexibly and guard against the risks of foreign exchange transactions: in the rapidly changing international financial market, early or late collection and payment will have different benefits and effects for foreign trade enterprises. Therefore, we 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 delivery should be delayed as much as possible within the performance period stipulated in the contract, or credit should be provided 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 other hand, as an importer, make corresponding adjustments. Because the advantage of using this method is the loss of the foreign party, 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 foreign investors from transferring the risk to us.