Industry experts: The RMB exchange rate may fluctuate bidirectionally, and enterprises and financial institutions should做好 risk management for exchange rate fluctuations

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The People’s Bank of China-controlled “Financial Times” pointed out that regarding the future trend of the exchange rate, industry experts recommend that in the coming period, the external environment will be complex and changeable. The RMB exchange rate remains highly uncertain, and foreign trade companies should hedge against exchange rate risks. “Currently, the international environment is complex and volatile, with increasing geopolitical conflicts, prolonged Russia-Ukraine war, turmoil in the Middle East, sudden political events in Latin America, and disputes over Greenland all potentially intensifying fluctuations in the global foreign exchange market and disrupting the RMB exchange rate trend. In the future, as the market plays a greater role in exchange rate formation, the RMB exchange rate may fluctuate both upward and downward, with two-way movement. Enterprises and financial institutions should not blindly follow trends or gamble on exchange rate movements but should adhere to a neutral exchange rate risk management philosophy,” industry experts advise.

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