When conducting transactions with Bahrain, you may need to send or receive payments in Bahraini Dinar. You are then naturally exposed to foreign exchange risk. Indeed, between the time you invoice your client in BHD and the time you collect the BHD, or conversely between the time your supplier issues an invoice in BHD and you settle that invoice in BHD, the EUR/BHD exchange rate may have moved in your favor or against you. To eliminate or minimize this risk of EUR/BHD exchange rate fluctuations (assuming your accounting currency is EUR) over a specified period, you can implement hedges on the EUR/BHD. By locking in the EUR/BHD rate in advance, you gain better visibility on your future cash flows in Bahraini Dinar (BHD) and secure your EUR/BHD budget rate.
Mondial Change allows you to hedge your foreign exchange risk on Bahraini Dinar (BHD). The foreign exchange risk coverage on Bahraini Dinar can be achieved through fixed forward contracts or flexible forward contracts. You can schedule a consultation with our trading desk. A market expert advisor will assist you in setting up your foreign exchange hedges on Bahraini Dinar (BHD).
To obtain accurate quotes on your Bahraini Dinar (BHD) hedges, we invite you to contact our trading desk.
Are there minimum or maximum amounts for setting up hedges in Bahraini Dinar (BHD)?
The maximum amount of hedges in Bahraini Dinar (BHD) you can validate primarily depends on the size of the forward exchange line granted to you. The line conditions granted depend on the review of your financial statements. Regarding minimum sizes, we generally do not take hedges for amounts below 10,000 EUR (or equivalent in other currencies).
What is the maximum possible maturity for hedges in Bahraini Dinar (BHD)?
What are the setup fees for hedges against foreign exchange risk in Bahraini Dinar (BHD)?
All fees related to setting up hedges in Bahraini Dinar (BHD) are included in the exchange rate communicated to you before the validation of your operation. The hedge is taken over the phone with a trading desk operator. No fees are applied to the use of your hedges.
Is a security deposit required to take a hedge in Bahraini Dinar (BHD)?
Again, this depends on the conditions of your forward exchange line. Thanks to its network of partners, Mondial Change generally manages to obtain forward exchange lines without an initial security deposit. Depending on your line conditions, margin calls may be triggered on your Bahraini Dinar (BHD) hedging contracts if the EUR/BHD rate (or any other pair on which you have validated a hedge) deteriorates beyond the variation margin or beyond your OTM. In such cases, you must deposit funds as collateral to keep your Bahraini Dinar (BHD) contracts open. Based on the review of your financial statements, lines without margin calls may sometimes be granted.
Are there minimum amounts for early drawdowns on flexible forward contracts in Bahraini Dinar (BHD)?
There is no minimum amount for drawdowns on your flexible forward contracts in Bahraini Dinar (BHD). You can draw down autonomously on the online platform as many times as you wish between the contract initiation and the maturity date of your forward contract in Bahraini Dinar (BHD).
What happens if at the maturity of my forward contract in Bahraini Dinar (BHD) I have not used the entire contract?
In this case, there are two possibilities. You can sell the balance of your contract by paying the potential exchange loss if the exchange rate at the time of resale is less favorable than your contract rate. Alternatively, you can request Mondial Change to extend your Bahraini Dinar (BHD) contract by a few months to give you time to use it. However, Mondial Change and its partners reserve the right not to accept postponing the contract's maturity date.
What is the current interest rate on Bahraini Dinar (BHD)?
The current interest rate on Bahraini Dinar (BHD) is "Currency Rate".
Are there carry points or discount points on forward contracts in Bahraini Dinar (BHD)?
It all depends on whether you are a buyer or seller of Bahraini Dinar (BHD) and against which currency you are trading the Bahraini Dinar. For example, against the euro: If you are a buyer of Bahraini Dinar (BHD) against the EUR, then there are report points because the interest rate of the Bahraini Dinar (BHD) is supérieur to that of the EUR. Conversely, if you are a seller of Bahraini Dinar (BHD) against the EUR, then there are déport points.
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