The export enterprise's foreign exchange lock-in enterprise first signs a summary agreement on forward settlement and sale of foreign exchange with the bank, and when the contract expires, it will settle or sell foreign exchange with the bank according to the currency, amount and exchange rate determined in the forward settlement and sale contract. This operation can avoid risks and realize asset preservation, that is, lock the exchange rate. In banks, this business is called forward settlement and sale of foreign exchange.

In the case of frequent exchange rate fluctuations, banks handle the operation of locking the exchange rate for enterprises. On the day of settlement of foreign exchange, it is not according to the foreign exchange quotation of the day, but according to the previously determined exchange rate.

Risks of export business

1. If the export specification and date are not in conformity with the contract, the foreign trade exporter will not deliver the goods according to the contract or the letter of credit. Due to the delay in delivery caused by the delay of the production plant, the products stipulated in the contract are replaced by products of the same specifications, and the transaction is made at the reserve price, with poor quality.

2. Inconsistent documents lead to the risk of foreign exchange collection. Although it is stipulated that foreign exchange should be settled by letter of credit and shipped on time and with good quality, the documents submitted after shipment are inconsistent with the documents.

The consistency of documents makes the letter of credit play its due protection role. At this time, even if the buyer agrees to pay, it will pay expensive international communication fees and non-conformity deduction fees in vain, which will greatly delay the time of collecting foreign exchange, especially for contracts with small amount, and will cause losses.