The best way to conference proceedings by Francis Academic Press

Web of Proceedings - Francis Academic Press
Web of Proceedings - Francis Academic Press

Research and Analysis on the current situation of foreign exchange risk management of transnational corporations in China

Download as PDF

DOI: 10.25236/edbm.2020.005


Xinrong Liu, Lu Wang

Corresponding Author

Xinrong Liu


In line with the principle of implementing the basic national policy of opening to the outside world, in recent years, the construction of China's open economic system has been steadily promoted. With the implementation of the policy of "one belt and one road", more and more enterprises in China begin to go abroad and become multinational corporations. Multinational enterprises will produce a large number of foreign exchange positions in the daily business operation of the company, and will inevitably face foreign exchange risks. The correct and effective management of foreign exchange risk is conducive to enhance the competitiveness of enterprises and enhance the profitability of the company. However, due to the lack of experience in foreign exchange management in China, enterprises cannot well assess and prevent foreign exchange risk and risk loss. This paper expounds the foreign exchange risks of multinational enterprises and the main types of foreign exchange risks, finds out the existing problems through analyzing the current situation of foreign exchange management of multinational enterprises, and puts forward constructive suggestions. It is expected that multinational enterprises can carry out effective foreign exchange risk management to prevent risks, reduce costs and maximize profits.


Multinational corporation, Foreign exchange risk, Foreign exchange risk management, Foreign exchange market