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Hedge Foreign Exchange Risk in CRC - Costa Rican Colon

Drapeau Hedge Foreign Exchange Risk in CRC - Costa Rican Colon

Foreign Exchange Risk Coverage on the Costa Rican Colon (CRC) with Mondial Change

Mondial Change allows you to hedge your foreign exchange risk on the Costa Rican Colon (CRC). Currently, foreign exchange risk coverage on the Costa Rican Colon 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 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 room. An expert market advisor will assist you in setting up your foreign exchange hedges on the Costa Rican Colon (CRC).

To obtain accurate quotes on your Costa Rican Colon (CRC) hedges, we invite you to contact our trading room.

Mondial Change Answers All Your Questions on Foreign Exchange Risk Coverage for Your Operations in Costa Rican Colon (CRC)

Are there minimum or maximum amounts to set up hedges in Costa Rican Colon (CRC)?

The maximum amount of hedges in Costa Rican Colon (CRC) 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 Costa Rican Colon (CRC)?

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

What are the setup fees for hedges against foreign exchange risk in Costa Rican Colon (CRC)?

All fees related to setting up hedges in Costa Rican Colon (CRC) are included in the exchange rate communicated to you before validating your transaction. The hedge is taken by 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 Costa Rican Colon (CRC)?

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 Costa Rican Colon (CRC) hedging contracts if the EUR/CRC 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 security to maintain your Costa Rican Colon (CRC) 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 Costa Rican Colon (CRC)?

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

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