Exchange rate is always an unavoidable topic for foreign trade enterprises. In order to avoid exchange rate risk, the company specially invited Wang Dongwei, President of the Development Zone Branch of Zheshang Bank, and Mao Jishuai, general assistant of the International Business Department of the branch, to share the exchange rate trend and market analysis in 2021. Meilian partners, cross-border e-commerce enterprises and Mascube business managers participated in the event.  

General manager Mao reviewed the trend of RMB exchange rate in 2020, analyzed the main reasons for RMB's volatile appreciation since June, and prospected the trend of US dollar and RMB in the future. Chairman Mao pointed out that we need to pay attention to the factors such as the positive realization of global economic recovery, the adjustment of foreign exchange policy, the rebound of overseas epidemic situation, the exhaustion of Profits made after Biden's election, and the change of financial market, which may trigger the fluctuation of market sentiment and the callback of RMB exchange rate. The short-term operation range of RMB exchange rate is 6.4-6.75, showing two-way fluctuation.  

Under the background of the current unilateral appreciation of RMB, there is a heated discussion on how to avoid exchange rate risk. Mr. Mao suggested that the US dollar can be retained through the bank's currency swap and other products to maximize the benefits.

In the future, foreign trade enterprises should enhance their risk awareness, abandon the thinking of "gambling on one side" and establish the concept of risk neutrality. Foreign exchange instruments such as forward settlement and sale of foreign exchange and options should be selected to lock in the exchange rate and avoid foreign exchange risk.