When conducting transactions with Bahrain, you may need to send or receive payments in Bolivian Boliviano. You are naturally exposed to currency risk. Indeed, between the time you invoice your client in BOB and the time you collect the BOB, or conversely, between the time your supplier issues an invoice in BOB and you settle it in BOB, the EUR/BOB exchange rate may have moved in your favor or against you. To eliminate or minimize this risk of EUR/BOB rate movement (assuming your accounting currency is EUR) over a specific period, you can implement hedges on the EUR/BOB. By locking in the EUR/BOB rate in advance, you gain better visibility on your future cash flows in Bolivian Boliviano (BOB) and secure your EUR/BOB budget rate.
Global Exchange allows you to hedge your currency risk on Bolivian Boliviano (BOB). Currency risk hedging on Bolivian Boliviano is currently possible only through NDF (non-deliverable forwards) contracts. The NDF is a hedging instrument used to cover currency 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 currency revaluation (or devaluation). Therefore, the NDF price is not linked to the interest rate differential between the two currencies involved. The NDF thus allows you to hedge your currency risk without any cash flow 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 currency hedges on Bolivian Boliviano (BOB).
To obtain accurate quotes on your Bolivian Boliviano (BOB) hedges, we invite you to contact our trading desk.
Are there minimum or maximum amounts for setting up hedges in Bolivian Boliviano (BOB)?
The maximum amount of hedges in Bolivian Boliviano (BOB) 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 Bolivian Boliviano (BOB)?
What are the setup fees for currency risk hedges in Bolivian Boliviano (BOB)?
All fees related to setting up hedges in Bolivian Boliviano (BOB) 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 Bolivian Boliviano (BOB)?
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 Bolivian Boliviano (BOB) hedging contracts if the EUR/BOB 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 maintain your Bolivian Boliviano (BOB) contracts open. Based on your financial statements, lines without margin calls may sometimes be granted.
Are there carry points or discount points on forward contracts in Bolivian Boliviano (BOB)?
It all depends on whether you are a buyer or seller of Bolivian Boliviano (BOB) and against which currency you are trading the Bolivian Boliviano. For example, against the euro: If you are a buyer of Bolivian Boliviano (BOB) against EUR, there are report points because the interest rate of Bolivian Boliviano (BOB) is supérieur to that of EUR. Conversely, if you are a seller of Bolivian Boliviano (BOB) against EUR, there are déport points.
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