China’s Forex Watchdog Warns Businesses About Exchange Rate Volatility

China’s foreign exchange regulator has told companies involved in international trade to do more to manage risks stemming from exchange rate fluctuations.

The warning comes as China’s exports boomed during the pandemic but the yuan’s exchange rates against other currencies have been volatile.

A guidebook released by the State Administration of Foreign Exchange (SAFE) earlier this month laid out a framework for companies to manage exchange rate risks, detailed how forex derivative instruments can be used and explained relevant accounting.