RMB foreign exchange swap is a financial derivative product, in which a company signs a contract with Industrial and Commercial Bank of China (ICBC) to agree on two buying and selling transactions of RMB against the same foreign currency with the same amount, opposite buying and selling directions, different delivery dates, and different delivery exchange rates. On the delivery date of the two transactions, the company handles the foreign exchange settlement or purchase business according to the currency, amount, and exchange rate specified in the contract. This derivative tool can help customers adjust the surplus and shortage of domestic and foreign currency funds, improve fund management efficiency, or solve the problem of medium and short-term foreign exchange fund sources, broaden funding channels and reduce the overall cost of funds, or avoid forward exchange rate risks.

In the current global economic situation, frequent fluctuations in exchange rates pose significant challenges to the business decision-making of foreign trade enterprises. After learning that a foreign trade enterprise in Khorgos Pilot Free Trade Zone has an urgent need for exchange rate risk management and liquidity of local and foreign currency funds, ICBC Xinjiang Branch acted quickly. From the perspective of providing personalized and refined exchange rate risk management services for enterprises, the regional branch, Ili Branch and sub branches jointly studied and discussed, and decided to use the policy advantages of the pilot free trade zone to carry out RMB foreign exchange swap business. In the process of business processing, the enterprise closely cooperates with our bank, carefully studies the market trend of the RMB exchange rate and relevant policies and regulations, carefully designs RMB foreign exchange swap plans for the enterprise, helps the enterprise successfully lock in exchange rate risks, obtains liquidity replenishment, and provides guarantees for the enterprise to achieve stable business development.

In the future, ICBC Xinjiang Branch will continue to actively explore financial innovation, utilize the policy dividends of the pilot free trade zone, and provide more support for the development of foreign trade enterprises within the pilot free trade zone. At the same time, we also hope to take advantage of this business breakthrough opportunity to share and replicate successful cases with more other companies, and jointly promote the wider application of RMB foreign exchange swap business in the pilot free trade zone, making greater contributions to the stable development of enterprises and the prosperity of the pilot free trade zone.