Exporters can use forward foreign exchange transactions to hedge. For example, an exporter with forward foreign exchange income can sign a contract with a bank to sell forward foreign exchange and fix the exchange rate, so that after the contract expires, it can be converted into local currency at the agreed exchange rate, regardless of the actual exchange rate in the foreign exchange market, thus preventing economic losses caused by the decline of foreign exchange rate. Importers with forward foreign exchange expenses can sign contracts with banks to buy forward foreign exchange at a fixed exchange rate. After the contract expires, they will exchange their domestic currency into contract currency according to the agreed exchange rate to pay for the goods, so as to avoid increasing the cost burden due to the rise of foreign exchange rate.

Further reading: How to buy insurance, which is good, and teach you how to avoid these "pits" of insurance.