Which period is the current quotation principle of the BOC Huizeng series?

6 months

In recent years, the flexibility of two-way fluctuations in the RMB exchange rate has increased, and the exchange rate risks faced by enterprises in cross-border business activities have increased. In the past, enterprises that bet on the unilateral trend of the RMB have experienced financial difficulties withstand trials and even suffer huge losses. In this market environment, regulatory agencies and organizations such as the People's Bank of China, the State Administration of Foreign Exchange, and the Foreign Exchange Self-Discipline Mechanism advocate the principle of "exchange rate risk neutrality" to enterprises to help them adapt to the normal situation of two-way exchange rate fluctuations and reduce operating risks. Adhering to the principle of "exchange rate risk neutrality" and forming an effective practical mechanism is also the process of the high-level two-way opening of my country's financial market and the deepening of exchange rate market-oriented reform during the "14th Five-Year Plan" period. Enterprises should respond to changes in the external situation and market environment important antecedent conditions. Reducing corporate exchange rate risks requires joint efforts by companies, banks, and regulatory authorities. As a leading bank in domestic foreign exchange business, Bank of China has always complied with the country's opening up to the outside world and has become an important link between enterprises and the global market. In its years of providing enterprise exchange rate risk management services, Bank of China has continuously explored and innovated, accumulated a lot of practical experience, and also concluded a Set of methodologies to provide support services for enterprises to optimize foreign exchange risk management.

Constructing a conceptual system of exchange rate risk management services

In the process of providing exchange rate management services to enterprises, Bank of China has established the purpose of serving the real economy and the means of making decisions based on customer needs. , a conceptual system with the goal of enterprises achieving exchange rate risk neutrality.

The purpose is to serve the real economy. When banks provide exchange rate management services to enterprises, they should do so from the perspective of customers and with the purpose of serving the real economy. Foreign exchange business is the traditional area of ??strength of Bank of China. Helping enterprises manage exchange rate risks is not only the fulfillment of Bank of China's responsibilities as a large bank, but also in line with Bank of China's strategic development pattern of "one body and two wings" and the realization of the vision of "building a world-class modern banking group" needs.

Taking customer-specific decisions as a means. China's foreign exchange market is in a period of rapid development. Enterprises are faced with an external environment that coexists with the two-way opening of the RMB foreign exchange market, the in-depth advancement of market-oriented reforms, and the actual background management of supply and demand relationships. They need to master both the operating rules of the global foreign exchange market and China's experience. . In the process of serving enterprises, banks should recognize the huge differences in the ability and resources of enterprises to cope with this situation, and provide different levels and types of exchange rate management in a service approach that is tailored to local conditions and customers and combined with the actual situation of enterprises. Serve.

The goal is to be neutral in exchange rate risk. In the past, many companies adopted procyclical foreign exchange management strategies, paying too much attention to the trend of the RMB exchange rate, and hoping that banks would provide judgment on exchange rate trends. While banks use their professionalism in participating in the foreign exchange market to strengthen corporate services, they should also continue to convey the concept of "exchange rate risk neutrality" to enterprises to help improve the financial stability of enterprises and avoid the "streaking" of exchange rate exposures that will bring negative consequences to production and operations. potential risks, thereby helping companies focus on their main business amid market fluctuations.

Bank of China’s practice of serving enterprises according to customer needs

“Exchange rate risk neutrality” is the balance and unity of an enterprise’s willingness, capabilities, and resources. If an enterprise with the ability and resources lacks the will, it will not only cause a waste of resources, but also expose the enterprise to additional risks; and the enterprise's willingness to manage exchange rate risk must also be based on the ability and resources. If the ability is lacking, the risk management will be ineffective. It will achieve twice the result with half the effort, and lack of resources will be stretched in practice. Banks should understand the willingness, ability and resources of customers to manage exchange rate risk, and make full use of their own resource advantages to enhance customers' willingness, improve capabilities and inject resources. Bank of China has been deeply involved in China's foreign exchange market for many years. When providing exchange rate risk management services to enterprises, it has always maintained in-depth communication with customers and formed a methodology for custom-tailored services for different types of enterprises.