Hedge Foreign Exchange Risk in BZD - Belize Dollar

Drapeau Hedge Foreign Exchange Risk in BZD - Belize Dollar

Foreign Exchange Risk Coverage on Belize Dollar (BZD) with Mondial Change

Mondial Change allows you to hedge your foreign exchange risk on the Belize Dollar (BZD). Currently, foreign exchange risk coverage on the Belize Dollar can only be achieved 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's 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 likelihood of a currency revaluation (or devaluation). Therefore, the NDF price will not be linked to the interest rate differential between the two currencies involved. The NDF thus allows you to hedge your foreign exchange risk without any flow being paid in the non-convertible currency. You can schedule a meeting with our trading desk. An expert market advisor will assist you in setting up your foreign exchange hedges on the Belize Dollar (BZD).

Mondial Change answers all your questions about foreign exchange risk coverage for your operations in Belize Dollar (BZD)

Are there minimum or maximum amounts for setting up hedges in Belize Dollar (BZD)?

The maximum amount of hedges in Belize Dollar (BZD) that you can validate primarily depends on the size of the forward exchange line granted to you. The granted line conditions depend on the review of your financial statements. Regarding minimum sizes, we generally do not take hedges for amounts less than 10,000 EUR (or equivalent in other currencies).

What is the maximum possible maturity for hedges in Belize Dollar (BZD)?

Generally, we do not offer hedges in Belize Dollar (BZD) for maturities exceeding 24 months, but this can be considered on a case-by-case basis. Please contact our trading desk for a personalized assessment of your needs.

What are the setup fees for foreign exchange risk hedges in Belize Dollar (BZD)?

All fees related to setting up hedges in Belize Dollar (BZD) are included in the exchange rate communicated to you before validating your transaction. 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 Belize Dollar (BZD)?

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 Belize Dollar (BZD) hedging contracts if the EUR/BZD rate (or any other pair on which you have validated a hedge) deteriorates beyond the variation margin or beyond your OTM. In such a case, you must deposit funds as collateral to keep your Belize Dollar (BZD) contracts open. Based on the review of your financial statements, lines without margin calls can sometimes be granted.

Are there carry points or discount points on forward contracts in Belize Dollar (BZD)?

It all depends on whether you are a buyer or seller of Belize Dollar (BZD) and against which currency you are trading the Belize Dollar. Taking an example against the euro: If you are a buyer of Belize Dollar (BZD) against the EUR, then there are déport points because the interest rate of the Belize Dollar (BZD) is inférieur to that of the EUR. Conversely, if you are a seller of Belize Dollar (BZD) against the EUR, then there are report points.

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