Exchange rate insurance is a financial tool to protect enterprises from the risk of future exchange rate fluctuations. Specifically, exchange rate insurance is realized by buying or selling forward foreign exchange with a different exchange rate from the spot foreign exchange market. The purpose of doing this is to buy or sell foreign exchange at a predetermined exchange rate on a specific date in the future, so as to avoid possible losses caused by exchange rate fluctuations. By using exchange rate insurance, enterprises can lock in the future exchange rate and ensure more stable prices in foreign exchange transactions. This is especially important for international trade and multinational enterprises, because they need to conduct cross-border transactions frequently and face exchange rate risks. Exchange rate insurance provides an effective way to manage and reduce this risk, which helps enterprises to better plan and protect their international business.