Hedge Foreign Exchange Risk in XAF - Central African CFA Franc

The maximum amount of hedges in Central African CFA Franc (XAF) 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 below 10,000 EUR (or equivalent in other currencies).

All fees related to the setup of hedges in Central African CFA Franc (XAF) are included in the exchange rate communicated to you before the validation of your transaction. The hedging is done by phone with a trading desk operator. No fees are applied to the use of your hedges.

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 hedging contracts in Central African CFA Franc (XAF) if the EUR/XAF 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 contracts in Central African CFA Franc (XAF) open. Based on the review of your financial statements, lines without margin calls can sometimes be granted.

There is no minimum amount for drawdowns on your flexible forward contracts in Central African CFA Franc (XAF). You can make drawdowns autonomously on the online platform, as many times as you wish between the contract initiation and the maturity date of your forward contract in Central African CFA Franc (XAF).

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 the rate of your contract. Alternatively, you can request Mondial Change to extend your contract in Central African CFA Franc (XAF) by a few months to give you time to use it. Mondial Change and its partners, however, reserve the right not to accept postponing the contract's maturity date.

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