| in the financial markets in financial product sales of | | | | because of the principle of immediate interest to the |
| "vendors", as people always like analyst attention, but | | | | absorption of foreign exchange fluctuations, how |
| also not as smooth and slick speculators, fund | | | | should a country management reserves? Recently, |
| managers did not do anything they want more | | | | China's holdings of U.S. debt holdings on the date the |
| energy, but this group comprised the financial | | | | debt of praise after another. The reason is simple, |
| transactions The most basic power of the financial | | | | the dollar fell, the yen rose, we made a choice. So |
| transactions not only build the most fundamental part | | | | what, "This is to follow the market", "help the |
| of the building, but also occupy the financial world and | | | | international exchange rate system reform," like the |
| the value of investments, hedge funds and | | | | popular view. In fact, the recognition of an act Ye |
| investment bank status equivalent position. Please | | | | Hao, criticizing an act worth mentioning, the most |
| note that I pen this point, is to dig out of these | | | | important thing is to make clear that what the basic |
| people through the basic idea of the scientific logic | | | | principles of behavior. So, China's foreign exchange |
| and its application to the nowadays common concern | | | | management principles what is it? Is to make |
| to the management of foreign exchange reserves. | | | | money? I think not. |
| Then, the vendor's basic philosophy of what we | | | | On China's foreign exchange management principles, |
| should learn what a big way? First track what | | | | we can implement its foreign exchange regime bite. |
| vendors of business process: they first accept the | | | | China pursues a pegged exchange rate regimes |
| transaction request of a party, then the opposite in | | | | essentially, is so, the most fundamental thing is to |
| the market looking for a request with the other, | | | | consider the level of economic development had |
| when both terms "match", they will accept the | | | | lagged behind the need to expand foreign trade |
| request of both sides of the transaction, a deal but | | | | surplus Lai encourage national economy, so we not |
| not for trading post, but the two sides (or one) | | | | only pegged exchange rate regime type, but also the |
| charge a fee, bringing the business to complete. This | | | | implementation of closed sales exchange rate system |
| looks simple to the simple process can not be what it | | | | (now canceled). Frankly speaking, that is, the use of |
| is worth the fuss about? | | | | all foreign exchange must be managed by the state. |
| The purpose of the transaction vendor products do | | | | In the process, the state Bing Bushi to earn |
| not bear the risk but only for a fee, on this | | | | exchange differences, but simply to facilitate the use |
| fundamental point, product vendors do not seek the | | | | of foreign exchange business and the right to make |
| difference (this is critical), while the only match for | | | | these companies the right to avoid the risk of |
| the conditions, such as species, quantity, period, price, | | | | exchange rate fluctuations, while the real national Que |
| and then he would propose a fee standard, if | | | | shoulder its corresponding obligations, any attempt to |
| mutually acceptable, then the completion of the | | | | make money, then? Although the situation has |
| transaction, if accepted, the transaction end, start | | | | changed now, large foreign exchange reserves, the |
| the next round of business. Is simple, but profound | | | | kinds of situation is more serious, but not to make |
| truth, fully embodies the ideas and finance | | | | money for the purpose of basic management |
| no-arbitrage hedge balance principle, this is the place I | | | | principles have not changed, at least not change sign. |
| am interested. | | | | This case, the structure of foreign exchange options, |
| Unfortunately, not all of the harbor and the purpose | | | | but also what is the point? |
| of the market vendors as practitioners have to | | | | Japanese yen is now up, and who can guarantee it |
| understand this basic truth. Last year in Shanghai, I | | | | will always be strong? U.S. dollar is now down, do not |
| had the privilege to participate in a foreign authority | | | | they will not be any rebound? In this sense, the risk |
| by the department hosted a seminar, listen to each | | | | of depreciation of a country's foreign exchange |
| bank's foreign exchange traders exchange their | | | | reserves and its reserve structure is independent (in |
| experiences. One of the most exciting part, is a | | | | 2008 a survey conducted after the financial crisis |
| "trader Year" hosted by talk show, guests have the | | | | proves the point: from the euro and the yen better |
| best title of course, traders, and television programs | | | | than the loss of reserves a small number of U.S. |
| with You Yipin professional. Hosts and guests only | | | | dollars). Foreign exchange management is not |
| one core subject: how to hedge the risk of foreign | | | | intended to take the risk, but hedging, hedging the |
| exchange transactions. Can be more than an hour's | | | | risk of simply not in a foreign currency to another |
| discussion, I can hardly hear a word related to risk | | | | currency appreciation to offset the depreciation, |
| hedging, but rather to make the difference voices. I | | | | because we can not predict what kind of future |
| have repeatedly asked their staff members | | | | foreign currency will depreciate or appreciate |
| whispered: What is the subject of discussion in the | | | | (because there down time with the same l). We can |
| end? Back said: hedge foreign exchange risk. I still | | | | grasp, is that long-term and the leading |
| have no chance to the two "Best" ask for advice | | | | money-related assets and made clear correlation |
| they understand what hedge, but I understand the | | | | hedging. Obviously, the yen is not a dominant |
| truth: The reason they get the best, not because of | | | | currency, and no hedging assets, holdings of |
| his business transactions to handle the risks of the | | | | Japanese bonds much lower risk of foreign exchange |
| obliterated, but lucky enough to take the risk but | | | | reserves, it is less magnified this risk. |
| received extraordinary risk premium. If this is indeed | | | | China's foreign exchange reserve management to |
| a number of banks where foreign exchange gain | | | | maturity, and does take time, but if even the most |
| from the risk of earnings, then they certainly are | | | | basic principles of foreign exchange reserves |
| lucky, but if the commercial banks only to hedge | | | | management are to grasp, again a long time that only |
| foreign exchange risk positions, or for a fee, then the | | | | a history lesson. May wish to learn of the financial |
| best are those behavior is undoubtedly dangerous, | | | | market vendors it may be more valuable than listen |
| because one can not always be lucky. | | | | to experts. |
| By a small push, and one bank should not give up | | | | |