(Yicai Global) June 25 -- Recent fluctuations in the exchange rate of the Chinese yuan with the US dollar has cut into the bottom line of Chinese foreign trade companies, prompting three government ministries to provide online tutorials to help enterprises avoid risk.

China’s Ministry of Commerce, the People’s Bank of China and the Administration of Foreign Exchange have organized a national online training course on exchange rate hedging and related topics, MOFCOM spokesman Gao Feng said yesterday. They are also asking financial institutions to optimize exchange rate hedging products and services.

The redback gained 3.1 percent against the US dollar between March 31 and May 31, hitting 6.3682, the strongest it has been since June 2018. It since weakened to 6.4621 on June 23, the lowest level since May 7.

Exchange rate fluctuations have had a big impact on Chinese companies. Over 2,600 firms disclosed exchange rate losses of over CNY10,000 (USD1,547) each last year while 740 companies made gains of over CNY10,000 each. There were total net exchange losses of more than CNY20 billion (USD3.09 billion) in 2020, according to Yicai Global research.

The volatile yuan, as well as the rising cost of raw materials and logistical difficulties, have affected the operations and output of some exporters, Gao said. The MOFCOM will keep a close eye on exchange rate fluctuations and help enterprises to take quick action.

Editor: Kim Taylor