Settlement of foreign exchange refers to the behavior that the owner of foreign exchange income sells his foreign exchange income to the designated foreign exchange bank, and the designated foreign exchange bank pays the equivalent local currency at a certain exchange rate. There are many forms of foreign exchange settlement, such as compulsory foreign exchange settlement, willingness foreign exchange settlement and quota foreign exchange settlement.

Hedging, that is, hedging in securities and futures, hedges spot transactions through futures trading to avoid risks, so as to achieve the purpose of hedging.

The situation of forward settlement hedging:

Recently, the appreciation of RMB has accelerated, and many enterprises that bought US dollar forward settlement products a few months ago found that long-term settlement is profitable. In recent trading days, the US dollar rebounded, and the exchange rate of RMB against the US dollar also showed a certain correction. According to industry insiders, buying US dollar forward settlement varieties during the RMB exchange rate correction will not only preserve the value, but also bring some benefits.

In recent months, due to the appreciation of RMB beyond market expectations, many enterprises that have purchased the varieties of forward settlement of US dollars have found that forward settlement of foreign exchange has brought them good benefits.