⇽ Currencies list

Hedge Foreign Exchange Risk in DJF - Djiboutian Franc

Drapeau Hedge Foreign Exchange Risk in DJF - Djiboutian Franc

Foreign Exchange Risk Coverage on the Djiboutian Franc (DJF) with Mondial Change

Mondial Change allows you to hedge your foreign exchange risk on the Djiboutian Franc (DJF). Currently, foreign exchange risk coverage on the Djiboutian Franc 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 exchanged 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 Djiboutian Franc (DJF).

To obtain accurate quotes on your Djiboutian Franc (DJF) hedges, we invite you to contact our trading desk.

Mondial Change Answers All Your Questions on Foreign Exchange Risk Coverage for Your Djiboutian Franc (DJF) Operations

Are there minimum or maximum amounts for setting up hedges in Djiboutian Franc (DJF)?

The maximum amount of hedges in Djiboutian Franc (DJF) 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. As for 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 Djiboutian Franc (DJF)?

Generally, we do not offer hedges in Djiboutian Franc (DJF) 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 Djiboutian Franc (DJF)?

All fees related to setting up hedges in Djiboutian Franc (DJF) 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.

Is a margin deposit required to take a hedge in Djiboutian Franc (DJF)?

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 margin deposit. Depending on your line conditions, margin calls may be triggered on your Djiboutian Franc (DJF) hedging contracts if the EUR/DJF 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 Djiboutian Franc (DJF) contracts open. Based on the review of your financial statements, lines without margin calls can sometimes be granted.

Are there forward points or discount points on forward contracts in Djiboutian Franc (DJF)?

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

YOUR HEDGING NEED IN DJF
Ellipse
Ellipse