ABSTRACT

 

Nowadays, with the continuous appreciation of the RMB against the US dollar,Chinese export-oriented multinational companies are facing increasing exchange rate risks. This article studies how to effectively predict and resolve exchange rate risks in overseas operations, and tries to put forward targeted policy recommendations to promote Chinese companies overseas to better adapt to the international economic environment and achieve globalization goals. First of all, this article introduces the current situation of Chinese companies affected by relevant exchange rate risks in the globalization process. Then through analysis, it is concluded that the main factors affecting the two most commonly used settlement currencies for Chinese companies today-the exchange rate of RMB against the US dollar include China's foreign exchange reserves,China's currency issuance M2, the ratio of China-US inflation rates, and China-US GDP The ratio of the growth rate. By analyzing the relationship between the above four types of macroeconomic data onthe exchange rate of RMB against the US dollar and the relevant data released by theNational Bureau of Statistics of China and the World Bank in December 2020,it can be predicted that the RMB will continue to appreciate against the US dollar in the future. Based on this judgment, this article puts forward five policy recommendations for Chinesemultinational companies: from management to product upgrading,establishing a risk management mechanism,implementing a localized business strategy or looking for a third-party market, and actively cooperating with the national RMB internationalization strategy.

 

Keywords: international trade, currency risk, RMB exchange rate