On May 12th, professor and PhD supervisor of Business School of University of International Business and Economics Zheng Jianming made a lecture on Global Foreign Exchange Situation, Features of RMB Rate and Management of Foreign Rate Risk in Room 420 in International Education Complex Building. The Executive Dean of the College Liao Dongsheng presided over the lecture. Students of the College and all postgraduates of College of Business attended the lecture.
Professor Zheng Jianming began his lecture with judgement of current situation, and made a point that the year 2015 was a year of currency war, in this year, price of the Swiss franc had a sudden increase, Japanese yen continously fell, and price of Chinese RMB had a sudden fall. He made analysis of global foreign exchange situation through microstructure of market, structure of deal, currency structure, and other indexes which discriminated degree of internationalization of currency.
Professor Zheng stated that United States dollar still dominated the current international currency market, and Chinese RMB occupied small portion,but trended toward an expansion.Under this circumstance, it was the operation of international capital that promoted the internationalization of RMB, and corporations would meet more foreign rate risk. He thought that the sudden devaluation of RMB in August of 2015 was the consequence of the competition between traditional trade group and the newly emerging financial group. By taking examples of the Four Banks, Professor Zheng interpreted features of the Four Banks and contrubution of exchange loss and decrease of interest and ananlysed heterogeneity of the influence on achievements of the Four Banks due to devaluation of RMB.
Professor Zheng took examples to analyze types of foreign exchange risk, they were deal risk, conversion risk, and economic risk. He proposed two ways of foreign exchange risk and applicability of management of foreign exchange risk, and drew a conclusion that the listed enterprises can use foreign exchange derivative to decrease foreign exchange risk when implementing the multinational management.
Sun Liao, a postgraduate of Collegeof Business said that Zheng’s lecture impressed him much a lot by his interpretation of the internationalization of RMB.