The assessment and resolvement of corporate exchange rate exposure in China
This paper considers the impact of operation activities and financial hedging in con-structing the exchange rate exposure faced by the Chinese enterprises.Using various databases to calculate and calibrate the exchange rate exposure in their operations for the first time,this paper discusses the determinants and solutions of exchange rate exposure in a comprehensive framework.This paper concludes three reasons for lower exchange rate exposure in their op-erations among Chinese enterprises:Low foreign production cost,low import penetration rate and low foreign revenue.Combined with the actual exchange rate exposure,we find exchange rate pass-through,operational hedging,foreign debt and foreign exchange derivatives reduces exchange rate exposure by 31.86％,3.76％,11.15％and 39.25％,respectively.This paper further expands the theoretical model to simulate the potential changes in the exchange rate exposure under two circumstances:Foreign countries promote the localization of the industrial chain and China continues to opening up.This paper explores exchange rate exposure from the perspective of micro-mechanism,which is of great value to the development of the foreign exchange market,resolving enterprises'exchange rate risk,and the formulation of related policies.
NETL
NSTL
万方数据
