With the deepening of China's market-oriented reform of the RMB exchange rate and the increasing internationalization of the RMB, for a large number of foreign-related SMEs, it is not only an unavoidable problem, but also a necessary skill that needs to be actively mastered to manage the exchange rate risks through the rational use of forwards, swaps, options and other financial instruments, flexibly respond to the uncertainty in the external environment changes, and ensure the stable operation of enterprises.
The main problems that foreign-related small and medium-sized enterprises face in dealing with exchange rate risks are as follows.
1. The understanding on exchange rate hedging tools is insufficient.
2. The cost of using financial instruments is relatively high.
3. There is a lack of professional talents and it's difficult to implement exchange rate hedging.
4. Products and services for exchange rate hedging need to be improved.
Suggestions on supporting small and medium-sized enterprises in managing exchange rate risks are as follows.
1. Enhance the risk neutrality awareness through multiple channels and improve internal management mechanism of enterprises.
2. Improve the supply market of exchange rate hedging tools.
3. Effectively reduce the related costs of exchange rate hedging for small and medium-sized enterprises.
4. Promote the products and services innovation in exchange rate hedging through technology empowerment.
