China's State Administration of Foreign Exchange Urges Enterprises to Strengthen Currency Risk Hedging Amid Increased RMB Volatility

According to Jin10, on July 17, China's State Administration of Foreign Exchange (SAFE) Deputy Director Li Bin stated at a State Council Information Office press conference that exchange rates are determined by market supply and demand and are difficult to predict. He noted that the RMB exchange rate has shown increased two-way fluctuations in recent years, requiring enterprises to adopt hedging strategies to manage currency risk and minimize the impact of exchange rate volatility on their core business and finances. SAFE and relevant financial institutions will continue promoting the concept of currency risk neutrality among enterprises.
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