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RMB Exchange Rate Fluctuates Sharply, and the Market Calls for Rich Derivatives Instruments

by Holly

In recent days, the exchange rate of RMB has fluctuated greatly. The exchange rate of offshore RMB against the US dollar once fell below the 7.28 mark, and then rebounded sharply.
Since the beginning of this year, more than 340 A-share listed companies have used foreign exchange hedging to avoid the risk of exchange rate fluctuations in the foreign exchange market.
According to insiders, at present, the foreign exchange hedging tools that companies can use mainly include forwards, options, foreign exchange swaps and currency swaps.
As the demand for exchange rate derivatives becomes stronger, the relevant domestic derivatives market instruments still need to be further enriched.

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