Core Viewpoint - The global financial market is at a critical "crossroads," with the Federal Reserve announcing a 25 basis point interest rate cut, leading to increased uncertainty in the market and significant fluctuations in the USD exchange rate [1] Group 1: Exchange Rate Management - The environment has intensified the volatility of the RMB against the USD, creating greater exchange rate uncertainty for foreign trade companies, making traditional methods of currency exchange inadequate [2] - An excellent foreign trade salesperson is not just responsible for securing orders but also for safeguarding profits by managing exchange rate risks effectively [2] Group 2: Pre-Contract Strategies - Establish clear pricing anchors in contracts, specifying the currency for pricing and settlement to mitigate exchange rate risks [6] - Include exchange rate sharing clauses in long-term contracts to distribute risks between parties if fluctuations exceed a predetermined range [6] - Implement price adjustment clauses to renegotiate prices if exchange rates fluctuate beyond a certain threshold before payment [6] Group 3: Post-Contract Strategies - Shorten payment cycles to reduce exposure to exchange rate fluctuations, utilizing methods like T/T against Copy Documents or sight letters of credit [6] - Consider staggered shipments and payments for large orders to spread risk over multiple time points [6] - Utilize foreign exchange derivatives, such as forward contracts, to lock in future exchange rates [6] Group 4: Currency Exchange Operations - The greatest risk in a volatile market is the lack of strategies and tools to manage fluctuations effectively [8] - Avoid common mistakes like "buying high and selling low" by setting target exchange rate ranges based on profit calculations [8] - Implement a strategy of phased currency exchange to smooth out the impact of exchange rate volatility [8] - Stay informed about bank promotions that may offer favorable exchange rates or reduced spreads [8]