2. Interest rate risk. The interest rate risk of foreign exchange products not only refers to the absolute level of interest rates in China, other countries and international markets, but also refers to the difference of interest rates between China and other countries and international markets. There are many factors that cause interest rate risk of foreign exchange products, such as economic cycle, macroeconomic policy, issuer's credit rating, guarantee, foreign exchange supply and demand, speculation and so on.
3. Credit risk. The credit of foreign exchange products includes the credit of the counterparty, the credit of the bank in the foreign currency issuing country, the credit of the guarantor and the country risk. Investors may underestimate the willingness and ability of foreign exchange counterparties to perform their duties and bear huge credit risks. Policy risk. National foreign exchange policies and tax policies will also cause fluctuations in foreign exchange investment income. Considering the risks of foreign exchange investment and financial management, we advise investors to pay attention to the following aspects: First, beware of the underground foreign exchange margin trading trap. Under the banner of "foreign exchange investment consulting", some companies in the society illegally represent overseas foreign exchange trading platforms to attract investors to engage in underground trading of highly leveraged foreign exchange deposits, and even forge trading platforms to directly engage in financial fraud, which makes it difficult for ordinary individual investors to effectively assess potential risks. This kind of illegal behavior disturbs the financial order and is not protected by law, which will also bring huge losses to investors. Therefore, investors should choose the legal compliance platform provided by commercial banks. Second, be wary of exchange risks. Some foreign currency wealth management products are traded in RMB at both ends, that is, investing in RMB, and the proceeds are also cashed in RMB, but the products are linked to foreign currency or foreign currency related targets. In the case of great turmoil in the foreign exchange market, this kind of foreign currency wealth management investment is prone to exchange losses at both ends. Thirdly, it is best to choose short-term foreign exchange investment products. In the case of large exchange rate fluctuation and uncertain trend, it is more suitable to invest in short-term foreign currency products, because such products are more liquid and flexible, which is more conducive to investors to control exchange rate risks and the income is higher than the time deposit interest rate. Finally, carefully invest in linked wealth management products. Most foreign exchange-linked wealth management products are directly linked to interest rates, and there are also various structured foreign exchange wealth management products linked to the prices of energy, precious metals and index funds. Investors must have a certain understanding of the linked target and have a strong risk tolerance.