Foreign exchange trading tools and hedging operations

Author: Han Fuling
Publisher:
Publish Date: 2003-03-01
Features: With the market supply and demand-based system, reference to a basket of currencies for regulation, and the managed floating exchange rate becoming an urgent issue for banks, enterprises, and individuals, this book provides an in-depth analysis of the factors related to the implementation of the floating exchange rate system, the abandonment of the single US dollar peg for the RMB exchange rate, and the fluctuations in the exchange rate. It also introduces the international financial market, forming a more flexible RMB exchange rate mechanism. This exchange rate reform has inadvertently exposed numerous banks, enterprises, and individuals in China to exchange rate risks. The book explores the nature, structure, and operational methods of foreign exchange trading tools commonly used in the market, such as foreign exchange futures, foreign exchange forwards, and foreign exchange options, and directly faces real-world exchange rate risks from the perspectives of banks and enterprises. Therefore, it proposes foreign exchange trading risk management strategies from different angles, such as foreign trade and resident investment.