On May 26, the Ministry of Commerce, the people's Bank of China and the State Administration of Foreign Exchange jointly issued the notice on supporting foreign economic and trade enterprises to improve their exchange rate risk management ability, which supported foreign economic and trade enterprises to improve their exchange rate risk management ability from the aspects of strengthening publicity and training, improving the convenience of RMB cross-border settlement, establishing a docking mechanism between "government, bank and enterprise", encouraging banks to actively expand the "first account" and giving full play to the guiding role of financial funds. According to the circular, local competent commercial departments, the people's Bank of China and branches of the foreign exchange bureau should timely figure out the impact of exchange rate changes on the production and operation of enterprises, carefully study and solve the "urgent difficulties and anxieties" of enterprises in carrying out exchange rate hedging and RMB cross-border settlement, and introduce targeted measures in combination with local actual conditions, increase effective policy supply, and create a good policy environment for banks and enterprises to enjoy benefits. The circular requires that publicity and training be strengthened to help enterprises establish the concept of "risk neutrality" of exchange rate. Banks are encouraged to provide enterprises with foreign exchange derivatives business that is commensurate with their risk tolerance and their hedging needs, and remind enterprises to follow the exchange rate risk management principle with "hedging" rather than "appreciation" as the core. Correct the speculative mentality of "gambling" and "speculation" in time, guide enterprises to focus on production and operation, consolidate their capital and strengthen their ability to resist risks. The circular requires that the service of exchange rate hedging products be improved to further enhance the convenience of RMB cross-border settlement. Banks are encouraged to continue to improve the service capacity of grassroots institutions for RMB to foreign exchange derivatives, support small and medium-sized banks to cooperate in handling RMB to foreign exchange derivatives services, and meet the diversified exchange rate hedging needs of enterprises. Further facilitate enterprises to use RMB in cross-border trade and investment, and encourage enterprises to avoid exchange rate risk through cross-border RMB pricing and settlement. Orderly carry out cross-border RMB centralized collection and payment under current accounts of multinational enterprise groups, and pilot projects to facilitate cross-border RMB settlement business of high-quality enterprises. In establishing a "government, bank and enterprise" docking mechanism to accurately serve small, medium and micro foreign trade enterprises, the circular requires that local competent commercial departments should strengthen cooperation with bank branches to promote the docking of bank and enterprise exchange rate hedging business. Banks are encouraged to actively expand the "first account" and expand the coverage of exchange rate hedging and RMB cross-border settlement business. Local people's banks and branches of foreign exchange bureaus should encourage banks to innovate and carry out foreign exchange derivatives business according to the characteristics of small, medium-sized and micro foreign trade enterprises, and guide and increase the support of small, medium-sized and micro enterprises through internal assessment, evaluation and incentive; Small and medium-sized banks are encouraged to give full play to their advantages of proximity and familiarity by cooperating with qualified banks to provide refined, specialized and personalized services for local small, medium and micro enterprises. The circular stressed the need to give full play to the guiding role of financial funds and reduce the comprehensive costs of enterprises. Local competent commercial departments should make good use of the special funds for foreign economic and trade development, and provide enterprises with public services such as business training, information services and exchange rate hedging on the premise of complying with WTO rules. Local people's banks and branches of foreign exchange bureaus should encourage banks and guarantee institutions to transfer profits to the real economy and reduce the risk avoidance costs of enterprises, especially small, medium and micro enterprises. Where conditions permit, we can explore ways to reduce the occupation of enterprise credit and capital by means of special credit, data credit enhancement and public deposit. Recently, the relevant documents issued by the general office of the State Council to promote the stability and quality of foreign trade also require that all localities provide more training, consultation and other public services in exchange rate hedging to foreign trade enterprises. Encourage banking institutions to innovate and optimize foreign exchange products, improve the service capacity of grass-roots banking institutions, actively increase the number of first-time accounts for exchange rate hedging, optimize the exchange rate hedging modules of online banking and online platforms, improve the convenience of business handling, and strengthen the exchange rate hedging services for small, medium-sized and micro foreign trade enterprises through internal assessment and incentives. (Xinhua News Agency)