Article: NEW SYSTEM INTRODUCTION MAKES FIRMS VALUE EXCHANGE RATE RISK


AsiaInfo Services
01-06-2006
New System Introduction Makes Firms Value Exchange Rate Risk

BEIJING, Jan 06, 2006 (SinoCast via COMTEX) -- After Introducing enquiry transaction mode and market maker system on inter-bank foreign exchange market, exchange rate of Renminbi became more flexible. So many companies started to consider how to avoid exchange rate risks.

In the past, many companies treated daily slight fluctuation of Renminbi exchange rate with indifference and they would rather bear losses brought by the exchange rate risks due to high costs of risk-control instruments like forward foreign exchange sale and settlement.

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