On March 14, the central parity rate of RMB against the US dollar was reported at 6.3506, down 200 basis points from the previous trading day; On March 3, the central parity rate of RMB against the US dollar was reported at 6.3016, up 335 basis points from the previous trading day. The two-way fluctuation of RMB exchange rate has gradually increased, and exchange rate risk management has become an important topic that foreign-related enterprises must face. "Thanks to the efforts of various parties, in 2021, China's market players' awareness of exchange rate risk prevention has been enhanced, the level of enterprise exchange rate risk management has been steadily improved, and more small, medium and micro enterprises have participated in foreign exchange hedging. In the whole year, the amount of foreign exchange settlement and sales signed by banks on behalf of customers and options was US $1057.7 billion, an increase of 67% over 2020, and the foreign exchange hedging rate of enterprises was 21.7%, an increase of 4.6 percentage points over 2020 Eight of the enterprises handling foreign exchange hedging business have become small, medium-sized and micro enterprises. " Recently, Jia Ning, director of the balance of payments Department of the State Administration of foreign exchange, told the economic daily. Strengthening the awareness of exchange rate hedging of enterprises From "laissez faire" to gradual recognition is the mental process of many enterprise managers' understanding of exchange rate risk management in recent years. Shaoxing xinzezhou import and Export Co., Ltd. is one of them. According to Dai Shoushui, executive director and general manager of the company, the company is facing the situation of centralized collection of foreign exchange at the end of the year. Since handling the exchange rate hedging credit loan product of Bank of China Shaoxing Branch, the loss of foreign exchange settlement of nearly 100000 yuan has been avoided, and the negative impact of exchange rate fluctuation on the company's finance has been greatly reduced. In fact, in the face of the risk of exchange rate fluctuations, many enterprises have practical difficulties of "unwilling to do it or not". In this regard, many foreign exchange bureaus accurately connected with service enterprises, strengthened visits and carried out door-to-door research on "one enterprise and one policy". Through face-to-face communication and discussion with enterprise bosses for many times, some enterprises have changed the non neutral concept of exchange rate risk in the gambling market. For example, in September 2021, when Jiangsu Branch of safe visited Nantong Changhai food additives Co., Ltd., in view of the actual difficulties that the parent company of the enterprise was not allowed to handle any hedging business and foreign exchange exposure, through publicity and communication, the enterprise finally obtained the permission of the parent company and handled the forward foreign exchange settlement of US $26.5 million. For another example, Zhejiang Hualong JuShui Technology Co., Ltd. gradually realized that the two-way fluctuation of RMB exchange rate is the future trend and decided to increase the hedging ratio. After a period of attempt, it finally determined the hedging ratio at more than 60%, effectively reducing the fluctuation of enterprise profit margin. Enhancing the awareness of exchange rate risk prevention of market subjects is also inseparable from the development and improvement of the foreign exchange market. According to Jia Ning, the safe has actively promoted the deepening development of the foreign exchange market, continuously enriched the exchange rate hedging tools and systems, and consolidated the foundation for serving the real economy. At present, China's foreign exchange market basically has an internationally mature foreign exchange derivatives system. Enterprises can carry out foreign exchange derivatives such as forward, foreign exchange swap, currency swap, option and corresponding combination in banks, and can flexibly choose full delivery or difference settlement (NDF) based on actual needs to meet the needs of diversified exchange rate hedging. At the same time, the scope of foreign exchange services basically covers all regions of the country, including the settlement currency of China's cross-border revenue and expenditure. According to the data, there are 115 banks that can provide foreign exchange derivatives services in China. The tradable currencies in the inter-bank foreign exchange market cover 29 developed and emerging market currencies, and there are more than 40 listed currencies in the bank counter foreign exchange market. Small, medium and micro enterprises become the focus of foreign exchange services Similar to the problems of difficult and expensive financing, due to the tight working capital of small, medium-sized and micro enterprises and the lack of redundant credit line, it is difficult to meet the margin requirements of bank exchange rate hedging. It is also difficult to obtain credit for foreign exchange hedging, and the payment of margin affects the capital turnover, which leads to the reluctance and inability of enterprises to do so. In order to solve this problem, the safe has vigorously promoted the joint efforts of various departments and taken multiple measures to reduce the hedging cost and threshold of small, medium-sized and micro enterprises. In October 2021, the National Foreign Exchange Trading Center issued a notice on the reduction and exemption of foreign exchange transaction fees related to banking services for small, medium-sized and micro enterprises to help banks make profits for small, medium-sized and micro enterprises in handling exchange rate hedging business. By the end of 2021, there were more than 10000 small, medium-sized and micro enterprises whose profits were transferred by relevant banks, and the handling charges of financial institutions are expected to be reduced by more than 5 million yuan in the whole year. At the same time, multi local foreign exchange branches, together with local financial and commercial departments, reduce the transaction cost of foreign exchange hedging for small, medium-sized and micro enterprises through credit support and risk sharing. In order to further facilitate the use of foreign exchange derivatives for hedging by small, medium-sized and micro enterprises, the safe has also actively expanded the offline and online channels for exchange rate hedging. On the one hand, we will steadily promote the development of bank cooperation in handling foreign exchange derivatives business, support qualified small and medium-sized banks to expand the exhibition of foreign exchange derivatives and better serve local small, medium and micro enterprises in foreign exchange hedging. Some branches also guide small and medium-sized banks to cooperate with other professional institutions and improve customer service level. On the other hand, support banks to continuously develop and optimize online trading platforms to facilitate foreign exchange hedging inquiry and trading of enterprises. Enterprises can access the online trading platform through online banking, mobile banking, customer electronic trading platform and other channels to save "foot cost". Some banks' online transactions accounted for more than 80% of small and micro enterprises. One example is the "public service platform for bank enterprise connection of foreign exchange derivatives" built by the Beijing foreign exchange management department to guide the self-discipline mechanism of the foreign exchange market in Beijing. In 2021, the platform responded to more than 1600 docking enterprises and signed contracts with more than 300 enterprises. Among them, more than 40% of enterprises with a derivative contract amount of less than US $1 million effectively improved the coverage of exchange rate hedging for small, medium-sized and micro enterprises. "In recent years, we have paid more and more attention to the impact of changes in the RMB exchange rate on the production and operation of enterprises. Last June, when we were doing business in the bank, we scanned the code through the publicity materials placed on the counter to register the public service platform for bank enterprise docking of foreign exchange derivatives in Beijing, and launched the demand for hedging business online. After receiving the demand through the platform, the bank visited the customer to facilitate the implementation of the public service platform The company's first $100000 forward exchange rate hedging transaction. " Li Wenling, financial manager of zhongyeda (Beijing) Intelligent Technology Co., Ltd., told reporters. Strengthen the service capacity building of financial institutions "It is an important support for enterprises to continuously improve the incentive mechanism and self-discipline of financial institutions." Jia Ning believes that compared with credit business and local currency business, the profitability of bank foreign exchange business is relatively low, the ability of branches to guest exhibition industry is weak, and some banks are unwilling to invest more resources, resulting in the "last mile" of policy implementation not fully dredged. In response to this problem, the safe made full use of the self-discipline mechanism of the foreign exchange market and the evaluation and incentive methods of foreign exchange business to guide banks to continuously strengthen the construction of enterprise service capacity. On the one hand, the safe has strengthened its guidance on the self-discipline mechanism of the foreign exchange market, promoted the member institutions of the self-discipline mechanism to continuously improve their self-discipline awareness and compliance operation level, and innovated and improved products and services. In 2021, the safe guided the self-discipline mechanism of the foreign exchange market, took the enterprise exchange rate risk management service as an important content of the evaluation of market makers in the foreign exchange market, guided the large market maker banks to give play to the "head goose" effect and continuously optimized the exchange rate risk management service for enterprises, especially small, medium and micro enterprises. At the same time, the self-discipline mechanism of the foreign exchange market carried out the risk neutral management evaluation of banks, guided and encouraged banks to strengthen the professional training of personnel, improved the business development capacity of branches, and effectively expanded the coverage of grass-roots foreign exchange derivatives services. On the other hand, by optimizing the evaluation and incentive mechanism of banks' foreign exchange business, the safe guides banks to reduce fees and transfer profits, and provides enterprises with low-cost exchange rate hedging products and services. In 2021, the administration of foreign exchange revised the content of the bank's foreign exchange business compliance and prudent operation evaluation, and clearly conveyed the policy guidance of strengthening exchange rate risk management services to the bank. At the same time, by holding mobilization meetings, supervision meetings, symposiums and other means, deploy and guide banks to strengthen resource investment, optimize and innovate exchange rate hedging products and services. Under the role of assessment and incentive, some banks give special credit lines for derivatives to customers of small, medium-sized and micro enterprises and reduce the occupation of funds; Some banks offer preferential quotations for exchange rate hedging for small, medium-sized and micro enterprises; Some banks use financial technology innovation services to explore ways to increase credit for enterprises and provide low-cost exchange rate hedging services through foreign comprehensive service platforms and blockchain cross-border financial service platforms; Some banks applied for special resources such as "President fund" and launched various incentive measures such as trading points exchange welfare and special competition to promote the expansion and increment of foreign exchange hedging business. For example, in January 2022, the Bank of Shanghai issued a civilized confirmation on matters related to the special credit line for small amount deposit free of foreign exchange agency derivatives. Small, medium-sized and micro enterprises that meet the requirements can apply for the special credit line for small amount deposit free of foreign exchange agency derivatives, and the maximum limit of a single household is 5 million yuan. Based on the direct connection with the relevant systems of the safe, Zheshang Bank carried out big data analysis and enterprise portrait of foreign trade enterprises, and launched the "export data loan" product, which can provide foreign exchange derivatives credit guarantee and exempt capital occupation for qualified small, medium and micro enterprises. "In the next step, the safe will highlight the principles of targeted publicity and accurate policy implementation, focus on small, medium-sized and micro enterprises, and guide more enterprises to better deal with exchange rate risks." Jia Ning said that it includes continuously strengthening enterprise risk education, popularizing the concept of exchange rate risk neutrality, and guiding enterprises to operate more steadily; Expand the depth and breadth of the market, enrich foreign exchange derivatives, and provide a more convenient policy environment for foreign exchange risk management of market entities; Strengthen policy cooperation with the Ministry of Commerce, SASAC and other departments, strengthen market guidance, and provide classified guidance around the weak areas of exchange rate risk management of small, medium-sized and micro enterprises and state-owned enterprises, so as to further reduce the exchange rate hedging cost of small, medium-sized and micro enterprises; Vigorously promote the expansion of the "first account" of foreign exchange hedging, strengthen the evaluation and incentive mechanism for banks, and improve the professional, refined and customized exchange rate risk management service level of banks. (Xinhua News Agency)