1, asset-liability adjustment method. Assets and liabilities expressed in foreign currencies are easily affected by exchange rate fluctuations. The change of currency value may lead to the decrease of profit or the increase of debt after conversion into local currency. Asset-liability management is to rearrange or convert these accounts into currencies that are most likely to maintain their own value or even increase their value. The core of this method is: try to hold coin assets or soft currency debts. Compared with the local currency or another base currency, the value of coins tends to be constant or rising, while the value of soft coins tends to decline. As a part of normal business, the implementation of asset-liability adjustment strategy is conducive to enterprises to take natural preventive measures against transaction risks. For example, in the lending law, when an enterprise has accounts receivable expressed in foreign currency, it can borrow a foreign currency fund equal to the accounts receivable to prevent transaction risks.
2. Prevent trading risks through risk allocation. Refers to the risk sharing caused by exchange rate changes between the two parties according to the signed agreement. The main process is to determine the basic price and exchange rate of the product, determine the method and time to adjust the basic exchange rate, determine the range of exchange rate change according to the basic exchange rate, determine the proportion of exchange rate change risk shared by both parties, and adjust the basic price of the product through consultation according to the situation.
3. Prevent trading risks through forward foreign exchange trading. When conducting forward foreign exchange transactions, enterprises sign contracts with banks, which stipulate the name, amount, forward exchange rate and delivery date of the currency sold by the buyer. The exchange rate remains unchanged from signing to delivery, which can prevent the risk of future exchange rate changes. A variant of forward foreign exchange trading is a forward contract with date options, which allows enterprises to conduct foreign exchange trading on any day within a predetermined time range. Of course, the forward foreign exchange transaction itself is risky, and whether an enterprise can avoid losses and gain benefits depends on whether the exchange rate forecast is correct. At the same time, forward foreign exchange transactions not only avoid the risk of unfavorable exchange rate changes, but also lose the profit opportunities brought by favorable exchange rate changes.
4. Use foreign exchange options to prevent trading risks. The so-called foreign exchange option is a contract signed by both parties to the foreign exchange option transaction in advance on whether to buy or sell a certain currency in the future at the agreed exchange rate. The foreign exchange option contract gives the option buyer the right, but has no obligation. Options are divided into call options and put options. For hedgers, foreign exchange options have three incomparable advantages over other hedging methods. First, limit the foreign exchange risk to option insurance premium; Second, keep the opportunity of profit; Third, it enhances the flexibility of risk management.