For car exporters in Horgos, exchange rate fluctuations are directly related to the "thickness" of profits and even determine the profit and loss of orders. In the context of the current two-way exchange rate fluctuations are intensifying,"risk neutrality" has become a required course for corporate survival.

Combined with the latest policies of the Horgos Pilot Free Trade Zone (as of April 2026) and actual operation cases, I have sorted out for you four major "tips" for auto exporters to deal with exchange rate risks:

Tip 1: Use "policy red envelopes" cleverly to reduce hedging costs

This is Horgos 'unique advantage. In order to encourage companies to avoid risks, local governments and financial institutions have launched a "five-in-one" support mechanism to directly help you save money.

1. "0 margin" processing business:

1. In the past, exchange rate hedging (such as forward settlement and sales of foreign exchange) required high margin payments, which occupied corporate cash flow.

2. Now: Horgos introduces a government-run financing guarantee agency. If your enterprise is a small, medium and micro foreign trade enterprise, the government issues a guarantee letter for you, and the bank can waive the deposit (or only need to pay a small amount). This means you can lock in an exchange rate at a very low cost.

2. Direct financial incentives:

1. Foreign exchange derivatives rewards: If you handle forward settlement and sales or options business, the government will pay you money. For example, forward business is rewarded based on the performance amount (e.g., 50 yuan for every US$10,000), and options business is subsidized based on a certain proportion of the option fee (e.g., 30%).

2. Cross-border RMB rewards: If you settle directly in RMB and the amount increases compared with the previous year, the government will also award rewards based on the amount (such as 0.5‰).

3. Note: The annual reward limit for each company is usually 50,000 yuan, and the local financial office needs to be consulted for details.

Tip 2: Use financial instruments to lock in future profits

Don't "bet" on the rise and fall of the exchange rate, but "lock" the future exchange rate through financial instruments.

1. Forward settlement and sales (most commonly used):

1. Scenario: You receive a $1 million order and expect to collect it in 3 months.

2. Operation: You make an agreement with the bank now that no matter what the market exchange rate is in three months, the bank will exchange the money to you at the agreed exchange rate today (such as 1:7.0).

3. Effect: Even if the US dollar falls to 6.5 three months later, you will still settle at 7.0, locking in profits.

2. Foreign exchange options (more flexible):

1. Scenario: You are worried about the dollar falling, but you feel that the dollar may rise and don't want to lock the exchange rate.

2. Action: You spend a little "option fee" to buy a right. If the exchange rate falls at maturity, you exchange it at the agreed good exchange rate; if the exchange rate rises, you can waive your rights and exchange it at the high market price.

3. Case: Horgos Jinzhong Import and Export Co., Ltd. handled option business through Agricultural Bank of China, which not only avoided risks, but also retained profit margins.

3. NRA account business:

1. If you have a registered company overseas, you can use your NRA account (domestic foreign exchange account of an overseas institution) to directly handle forward foreign exchange settlement at a bank in Horgos, eliminating the need for cumbersome cross-border transfers and making it more efficient.

Tip 3: Promote cross-border RMB settlement to fundamentally "remove risks"

This is the most thorough way to avoid risks-no foreign currency, only RMB.

Logic: Since exchange rate risk comes from the process of "converting foreign currency into RMB", if RMB is used throughout the entire process from signing the contract to receiving payment, there will be no exchange rate fluctuations.

Current situation: Currently, the five Central Asian countries, Russia and other regions are increasingly accepting of the RMB. The Horgos area is vigorously promoting cross-border RMB settlement, and many automobile exporters (such as Xinjiang Rensen Trading) have already avoided risks in this way.

Advantages: Not only does it avoid exchange rate risks, but it also saves exchange fees, and funds arrive faster (second-level accounts).

Tip 4: Innovate Supply Chain Finance to Solve the "Money Shortage"

Automobile exports often involve "advance funds", and slow capital turnover will amplify exchange rate risks.

Xinjiang's first innovative product: Horgos Financial Holding Group cooperated with Industrial Bank to launch Supply Chain Finance products for automobile trade.

Operation: Digitalize the entire process of "order-logistics-settlement" and introduce it into state-owned enterprise platforms to enhance credit.

Effect: Banks can provide cross-border direct loans or internally insured loans based on your orders. This not only solves the shortage of funds, but also reduces financing costs through credit enhancement by state-owned enterprises, giving you more confidence to negotiate exchange rate lock-in prices with banks.

Recommendations for action for exporters

1. Calculate the accounts: Don't just look at the spot exchange rate, but also include the comprehensive cost after "financial costs + policy rewards and subsidies". Sometimes although the locked exchange rate may seem lower, the actual benefits may be higher when government subsidies are added.

2. Find the right person: Directly contact Bank of China, Agricultural Bank of China, Industrial Bank and other branches with innovative products in the Horgos area (such as Agricultural Bank of China Yili 62nd Regiment Branch, ICBC Cooperation Center Branch), and ask if there is a "special exchange rate hedging plan" for small, medium and micro foreign trade enterprises.

3. Establish a mechanism: Enterprises must establish an exchange rate risk management system within them, adhere to the principle of "risk neutrality", regardless of the rise and fall of the exchange rate, and focus on earning trade differences rather than betting on exchange rate fluctuations.

Horgos 'current policy environment is very friendly. By making good use of these "tools" and "dividends", your car export business can prosper more steadily in the storm.

Source: New energy at the forefront of the sea

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