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Hedge Foreign Exchange Risk in BTN - Bhutanese Ngultrum

Drapeau Hedge Foreign Exchange Risk in BTN - Bhutanese Ngultrum

Foreign Exchange Risk Coverage on Bhutanese Ngultrum (BTN) with Mondial Change

Mondial Change allows you to hedge your foreign exchange risk on the Bhutanese ngultrum (BTN). The foreign exchange risk coverage on the Bhutanese ngultrum 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'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 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 hedge your foreign exchange risk without any cash flow being transferred in the non-convertible currency. You can schedule a meeting with our trading desk. A market expert advisor will assist you in setting up your foreign exchange hedges on the Bhutanese ngultrum (BTN).

To obtain accurate quotes on your Bhutanese ngultrum (BTN) hedges, we invite you to contact our trading desk.

Mondial Change answers all your questions on foreign exchange risk coverage for your operations in Bhutanese ngultrum (BTN)

Are there minimum or maximum amounts to set up hedges in Bhutanese ngultrum (BTN)?

The maximum amount of hedges in Bhutanese ngultrum (BTN) that 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 Bhutanese ngultrum (BTN)?

Generally, we do not offer hedges in Bhutanese ngultrum (BTN) for maturities exceeding 24 months, but this can be reviewed 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 Bhutanese ngultrum (BTN)?

All fees related to setting up hedges in Bhutanese ngultrum (BTN) are included in the exchange rate communicated to you before validating your transaction. The hedging is done by 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 Bhutanese ngultrum (BTN)?

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 Bhutanese ngultrum (BTN) hedging contracts if the EUR/BTN 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 Bhutanese ngultrum (BTN) contracts open. Based on the review of your financial statements, lines without margin calls may sometimes be granted.

Are there carry points or forward points on forward contracts in Bhutanese ngultrum (BTN)?

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

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