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What are the ways for enterprises to avoid exchange rate risks?
There are two main ways to avoid exchange rate risk:

The first method is a natural hedging method that does not use financial derivatives, such as adopting more favorable currency and settlement methods; Pass it on to suppliers or customers by lowering the purchase price and raising the export quotation, or share the risk of exchange loss; Add exchange rate clauses to the contract; Of course, this way will greatly reduce the competitiveness of enterprises, not desirable!

Second, financial instruments provided by banks or financial institutions to improve their ability to control exchange rate risks. The main financial instruments include forward settlement and sale of foreign exchange, forward contract hedging, currency futures hedging, currency option hedging, currency swap, export treasure (exchange rate locking) and so on.