China foreign exchange trading center announced on April 7, 2011 interbank foreign exchange market price is in the middle of RMB exchange rate: 1 USD to RMB 6.5456 Yuan, 1 euro for 9.3697 Yuan, 100 yen for 7.6619 Yuan, 1 Hong Kong dollar of 0.84190 Yuan, 1 pound 10.6785 Yuan, 1 Yuan on 0.46206 ringgit, RMB $ 1 to 4.3064 Russia rubles.
Using FX options to avoid exchange rate risk for Wicker export enterprises, is no stranger. Business of Chinese commercial banks ' foreign exchange option has a few years, but the business can only be done between the two foreign currency, business income involving foreign currency business in different countries, by commercial banks and foreign exchange options trading can provide effective protection against exchange rate risk.
for example, ABC Company is a foreign trade enterprises in China, at the same time with the United States and Japan companies do business with the company from the United States imported raw materials, Japan exported finished products. Recent company is expected to have a yen after 3 months revenue, companies want to avoid the risk of depreciation of the yen, in appreciation of the yen at the same time, you can enjoy the benefits of the yen.
and ABC enterprises and commercial banks to make a fortune trading foreign exchange options, buy a Yen put options. The option agreement, the company shall be entitled to after 3 months according to the US $ 1 to sell 1 billion yen to 90 yen. Depreciation of the yen if maturity exceeds the exercise price, the company can exercise this right, but Yen price better if when it expires, you can give up the rights of the company. However, in order to get this right, companies need to pay a premium of us $ 100,000.
the adoption of such a deal, the company will risk of depreciation of the yen may, suffered losses to lock, and may get additional income when in appreciation of the yen, and the cost is to pay a premium.
under Bank of China website provides of information, enterprise customer in and commercial banks do Exchange option transactions Shi, program main has 4 step, first step: customer and Bank signed derived transactions total agreement under; second step, customer by written delegate form determine option transactions of details, including currency species, and amount and so on, and to this to Bank inquiry; third step, transactions once reached, Bank to customer for transactions confirmed; fourth step is settlement links, option buy direction Bank paid option fee. Choose the actual delivery due date if the buying party, against you in accordance with the terms of options, in addition, customers may also need to pan your expiration date and the Bank.
in fact, RMB on the FX options business of foreign exchange option is similar to the above, is to expand the currency between the renminbi and a foreign currency. Obviously, for most of China's foreign trade enterprises, the business more meaningful. In a more elastic and Renminbi exchange rate appreciation pressure of circumstances, can provide the variety Wicker export enterprises with tools for effective management of the Renminbi exchange rate fluctuations.
