In import and export trade, exchange rate fluctuations are a common economic risk that can lead to corporate loss instability, especially during periods of high volatility in the global market.

Use of cross-border RMB settlement
Through cross-border transactions using the RMB, the risk of exchange rate changes can be transferred to foreign traders. This approach simplifies exchange rate management, but it should be noted that when the currency of the other country is larger relative to the RMB fluctuation, foreign traders may require price adjustment, which can lead to increased complexity of price negotiations.

2) Bank locking operations
Blockchain is an agreement with the bank to lock the exchange rate for a certain period of time, and settle according to the locked exchange rate regardless of how the market exchange rate changes. This method can effectively avoid losses caused by exchange rate fluctuations and is suitable for that pursue stable cash flows. Enterprises can choose short-term (such as a week, January) or medium-term (such as March) lock exchange products, based on their needs and the banks offer price.

Choosing other risk hedging tools
In addition to locking currencies, there are other financial derivatives such as futures, options, etc. that can be used to hedge exchange rate risk. For example, by buying a currency option, an enterprise can buy or sell currencies at a fixed price at some point in the future, thus protecting itself from adverse effects of exchange rate changes.

Management of multi-currency accounts
Enterprises can open multi-currency accounts to flexibly exchange currencies according to changes in market exchange rates, thereby reducing the impact of exchange rate changes. This practice requires enterprises to have strong financial management capabilities and sensitivity to the foreign exchange market.

Sharing risks with customers or suppliers
The contract can be negotiated with the other party, and when the exchange rate changes exceed a certain range, the two sides can renegotiate the price or payment conditions. This way requires good business relationships and open communication, ensuring that both sides accept options that share risk.

Regular review of foreign exchange strategy
Given the constant changes in the global economy and exchange rates, companies should periodically review and adjust their foreign exchange management strategies.This includes analyzing current forex market trends, evaluating the effectiveness of measures taken and adjusting strategies according to the latest market conditions.

Effective management of exchange rate risk requires companies to have forward-looking financial strategies and flexible market response capabilities. Through the above approach, companies can reduce the impact of adverse exchange rate fluctuations on profits and thus remain competitive and profitable in international trade.