Hedging is hedging against risk.
Hedging is an investment that deliberately reduces the risk of another investment, which is a way to reduce the risk of a business while still making a profit on the investment.
Generally speaking, a hedge is two trades that are simultaneously correlated with the market, in opposite directions, in equal numbers, and break even.
The state only allows the yuan to circulate in China.
When you arrive in China, you have to convert it into RMB before you can use it.
For example, when a foreign businessman arrives home, he must go to the bank to exchange RMB.
Upon receipt, the country will exchange the corresponding RMB to the merchant, so that the country will receive the US dollars and remit the RMB.
In recent years, China has been maintaining, leading to the country to save a large amount of foreign exchange, at the same time, a large amount of RMB has been invested in various domestic fields, leading to the current surplus liquidity in China, which also leads to inflation.
