Preventing exchange-rate risks to minimize losses

Dr. Nguyen Tri Hieu stated that the trend of trade war between the US and China has been escalating, which can lead to strong fluctuations in the international foreign exchange market, a certain impact on the exchange rate of Vietnam.

That is very risky for businesses because exchange rate movements can fluctuate very strongly. Therefore, for enterprises doing business in a methodical manner, they should buy futures contracts, accept high costs but be sure there is a lot of USD available to sell to businesses when they need to serve the operation. business. Exchange rate risk derivatives for Vietnam’s import and export companies are relatively adequate. Currently there are some popular products that banks are providing for businesses such as forward (swap), swap (spot) transactions, spot (spot) … These products import and export enterprises can be used if there is a need to prevent exchange rate risk.