How could foreign investors minimize currency exchange risks?

We are a Chinese developer looking to invest in a revenue-generating property in the U.S. The investment will partially be funded by loan that needs to be repaid in RMB. With the cash flow generated in USD, what are some measures that could be taken to minimize our exposure to exchange rate risks?

Answers

On May 23, 2018 Korosh Farazad answered:

If your loan is in RMB and you are generating USD, you can discuss with your Chinese lender to work out a fixed rate agreement. Usually, our transactions are in USD or euro currency; therefore, we have limited exposure in FX rates and risks.

On May 28, 2018 Sheri Chromow answered:

There are ways to hedge currency swaps. I would start with your banker.

On May 22, 2018 Robert J. Ivanhoe answered:

Many people buy currency hedges to mitigate this risk, though there is an associated cost. That's about all I think you can do.

Magazine Sign Up

Sign up to receive a free copy of our industry leading global immigration magazine

Become a Verified Member

Join our the global immigration community

join for free

Programs by Country

Europe
Caribbean
Asia
MENA
Australasia
North America