“In the current changing environment of the international market, the fluctuation of foreign exchange rate has become an important risk that can not be ignored.” When facing the operational risks brought by exchange rate fluctuations, how can enterprises lock the exchange rate in advance and avoid losses? On the afternoon of May 17, the signing ceremony of “trade finance – exchange rate hedging” inclusive financial services and the product press conference of “Jianyue · yindanhui” of Guangdong Branch of China Construction Bank were held in Guangzhou.
At the Chaozhou Branch, CCB Chaozhou Branch signed a strategic cooperation agreement with Yuecai Chaozhou guarantee company. The two sides will use financial technology, data sharing and other means to deepen cooperation in expanding the guarantee scale of exchange rate transactions, promoting the innovation of product and service modes, expanding Inclusive Finance and strengthening risk management, so as to organically combine the bank’s exchange rate business with guarantee business, Effectively help import and export enterprises avoid the risk of exchange rate fluctuations. Leaders from Chaozhou Municipal Bureau of Commerce, Chaozhou Municipal Administration of foreign exchange and Chaozhou Branch of China export and Credit Insurance Corporation attended and witnessed the signing ceremony.
On the same day, Guangdong Yuecai financing guarantee Group Co., Ltd. and Guangdong Branch of China Construction Bank jointly released the “Jianyue · yindang foreign exchange” long-term foreign exchange settlement and sales products. The “trade finance – exchange rate hedging” service and “Jianyue · yindang foreign exchange” products are the five parties of “Zhenghui yindang” working together to actively explore and establish a new exchange rate hedging model serving the main body of the foreign trade market, Provide more powerful financial guarantee tools for further stabilizing foreign trade and foreign investment.
Under the new mechanism of “trade finance – exchange rate hedging”, CCB Guangdong Branch provides long-term foreign exchange settlement trading services to small, medium-sized and micro foreign trade enterprises in Guangdong Province (excluding Shenzhen) that have taken out export credit insurance policies. Through the introduction of policy guarantee mechanism, the long-term foreign exchange settlement and sales trading quota applied by enterprises is guaranteed by a third-party guarantee company, without mortgage and margin provided by enterprises, Effectively solve the problem of “high threshold and high cost” when enterprises handle long-term foreign exchange settlement and sales business.
“Our foreign trade enterprises collect foreign exchange in a small amount and with high frequency, and exchange rate fluctuations have a great impact on the company’s profits. In the past, we also went to a bank for forward transactions, but we gave up because we needed to pay a deposit.” The relevant person in charge of an enterprise said that with the “bank guarantee of foreign exchange”, the long-term foreign exchange settlement business can be handled only by signing a guarantee limit contract, and there is no need to provide margin, which not only solves the problem of enterprise capital turnover, but also reduces the financial cost and greatly enhances the confidence of enterprises in carrying out foreign trade business.
In March this year, the long-term foreign exchange settlement and sales business of “yindanhui” has been piloted in Huizhou City, and Guangdong Zhiyuan International Trade Co., Ltd., a Huizhou foreign trade enterprise, successfully launched the province’s first innovative product. “Yindanhui” has gradually achieved preliminary results in Huizhou, which is expected to benefit nearly 1000 local small, medium and micro foreign trade enterprises, form favorable experience and replicate and promote it to the whole province.
As early as 2019, CCB Guangdong Branch, Guangdong Provincial Department of Commerce and China export credit insurance Guangdong branch jointly launched “trade finance and trade” inclusive financial services to provide low interest rate and pure credit credit support for small and medium-sized foreign trade enterprises. So far, it has issued more than 3 billion yuan of “trade Finance and trade” to nearly 1000 small and medium-sized foreign trade enterprises, which has become a typical case of Guangdong financial system supporting “stabilizing foreign trade”.
According to reports, the launch of the “trade and Finance – exchange rate hedging” inclusive financial services has further improved the financial stability of foreign trade, incorporated the long-term foreign exchange settlement and hedging measures of foreign trade enterprises into the service system, and customized comprehensive financial services from credit support to exchange rate hedging for foreign trade enterprises through the tripartite linkage innovation of “government, bank and insurance”.
“The model innovation of ‘trade finance – exchange rate hedging’ and the product innovation of ‘Bank bearing foreign exchange’ are the vivid practice of CCB cooperating with all parties to stabilize foreign investment and foreign trade. The joint innovation and linkage promotion of ‘government, foreign exchange, bank, insurance and bearing’ and the use of flexible financial instruments and rich services will better meet the exchange rate hedging needs of foreign trade market entities.” The relevant person in charge of CCB Guangdong Branch said, “CCB Guangdong branch will continue to deepen the financial services of small, medium-sized and micro foreign trade enterprises, moisten the real economy with the inclusive nature of new finance, and help the high-quality development of Guangdong’s foreign trade economy.”
