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Covering Foreign Exchange Risk in BDT - Bangladeshi Taka

Drapeau Covering Foreign Exchange Risk in BDT - Bangladeshi Taka

The Foreign Exchange Risk in Bangladeshi Taka (BDT)

When conducting transactions with Bangladesh, you may need to send or receive payments in Bangladeshi Taka. You are then naturally exposed to foreign exchange risk. Indeed, between the time you invoice your client in BDT and the time you collect the BDT or conversely between the time your supplier issues their invoice in BDT and you settle this invoice in BDT, the EUR/BDT rate may have moved in your favor or against you. It is to eliminate or minimize this risk of EUR/BDT rate movement (assuming your accounting currency is EUR) over a determined period that you can implement hedges on the EUR/BDT. By locking in the EUR/BDT rate in advance, you gain better visibility on your future cash flows in Bangladeshi Taka (BDT) and secure your EUR/BDT budget rate.

Foreign Exchange Risk Coverage on Bangladeshi Taka (BDT) with Global Exchange

Global Exchange allows you to cover your foreign exchange risk on Bangladeshi Taka (BDT). The foreign exchange risk coverage on Bangladeshi Taka can currently only be done through NDF (non-deliverable forwards) contracts. The NDF is a hedging instrument used to cover your foreign exchange risk on partially or non-convertible currencies. At the contract expiration date, the rate at which the contract was concluded is compared with the fixing rate. The latter is official and published daily by the Central Bank of the concerned country. The NDF price represents the probability of a revaluation (or devaluation) of the currency. Therefore, the NDF price will not be linked to the interest rate differential between the two currencies involved. The NDF thus allows you to cover your foreign exchange risk without any flow being paid in the non-convertible currency. You can schedule a meeting with our trading room. A market expert advisor will assist you in setting up your foreign exchange hedges on Bangladeshi Taka (BDT).

To obtain accurate quotes on your Bangladeshi Taka (BDT) hedges, we invite you to contact our trading room.

Global Exchange Answers All Your Questions on Foreign Exchange Risk Coverage for Your Operations in Bangladeshi Taka (BDT)

Are there minimum or maximum amounts to set up hedges in Bangladeshi Taka (BDT)?

The maximum amount of hedges in Bangladeshi Taka (BDT) 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 Bangladeshi Taka (BDT)?

Generally, we do not offer hedges in Bangladeshi Taka (BDT) for maturities exceeding 24 months, but this can be considered on a case-by-case basis. Please contact our trading room for a personalized study of your needs.

What are the setup fees for foreign exchange risk hedges in Bangladeshi Taka (BDT)?

All fees related to setting up hedges in Bangladeshi Taka (BDT) 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 room operator. No fees are applied to the use of your hedges.

Is a security deposit required to take a hedge in Bangladeshi Taka (BDT)?

Again, this depends on the conditions of your forward exchange line. Thanks to its network of partners, Global Exchange generally manages to obtain forward exchange lines without an initial security deposit. Depending on your line conditions, margin calls may be triggered on your Bangladeshi Taka (BDT) hedging contracts if the EUR/BDT rate (or any other pair on which you have validated a hedge) deteriorates beyond the variation margin or beyond your OTM. In this case, you must deposit funds as collateral to keep your Bangladeshi Taka (BDT) contracts open. Based on the review of your financial statements, lines without margin calls can sometimes be granted.

What is the current interest rate on Bangladeshi Taka (BDT)?
The current interest rate on Bangladeshi Taka (BDT) is "Currency Rate".

Are there carry points or discount points on NDF contracts in Bangladeshi Taka (BDT)?

It all depends on whether you are a buyer or seller of Bangladeshi Taka (BDT) and against which currency you are trading the Bangladeshi Taka. If we take an example against the euro: If you are a buyer of Bangladeshi Taka (BDT) against the EUR, then there are report points because the interest rate of Bangladeshi Taka (BDT) is supérieur to that of the EUR. Conversely, if you are a seller of Bangladeshi Taka (BDT) against the EUR, then there are déport points.

YOUR HEDGING NEED IN BDT
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