First, the risk faced by the company is the depreciation risk of the US dollar. If the dollar falls, the euro appreciates, and you buy goods from Europe, the purchasing power of money drops obviously. Secondly, the goods you buy enter the domestic market, and the competitive sales and profit level of the goods are reduced. The RMB obtained after the sale needs to be converted into US dollars. The depreciation of the US dollar and the appreciation of the RMB can give you a certain exchange rate difference to make up for the loss of the appreciation of the euro. If the RMB depreciates, it will cause the RMB to be converted into dollars.

Second, if you want to take precautions, you need to open a foreign exchange futures account and buy and sell exchange rate hedging. Or your own company portfolio holds money and distributes it in proportion.

The third risk is that the monetary policy in the euro zone and at home is abnormal. For example, the euro zone allows the currency to appreciate, while the domestic exchange rate remains stable or depreciates, which creates bilateral exchange rate risks.

The business cycle of the fourth company is 120 days, which is not short. The exchange rate risk generated in these four months is enough for you to lose 5%. For example, from 6.9 yuan RMB in May this year to 6.63 at the end of August now, the exchange rate risk has almost reached 5%. It is suggested that you shorten the cycle days and reduce the inventory to reduce the exchange rate risk.

How many euros are set aside for the allocation of funds for various commodities is also converted into dollars during the delivery period. How much RMB do you hold when the total amount of after-sales payment is converted into RMB? After the goods are sold out, all RMB will be converted into US dollars. The rest is in dollars. Basically, a single risk can be completely eliminated.