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Hedging currency risk in EUR - Euro

Drapeau Hedging currency risk in EUR - Euro

The currency risk in euro (EUR)

When you conduct transactions with countries in the eurozone, you may need to send or receive payments in euro. You are then naturally exposed to currency risk. Indeed, between the moment you invoice your client in EUR and the moment you collect the EUR or conversely between the moment your supplier issues their invoice in EUR and you settle this invoice in EUR, the EUR/EUR exchange rate may have moved in your favor or against you. It is to eliminate or minimize this risk of EUR/EUR exchange rate movement (assuming your accounting currency is EUR) over a determined period that you can implement hedges on the EUR/EUR. By locking in the EUR/EUR exchange rate in advance, you effectively gain better visibility on your future cash flows in euro (EUR) and secure your EUR/EUR budget rate.

Currency risk hedging on the euro (EUR) with Mondial Change

Mondial Change allows you to hedge your currency risk on the euro (EUR). Currency risk hedging on the euro can be done through fixed forward contracts or flexible forward contracts. It is also possible to hedge the currency risk on the EUR using currency options. You can use our hedging assistance tool which will help you select the hedging strategy best suited to your needs. You can also schedule a consultation with our trading desk. An expert market advisor will assist you in setting up your currency hedges on the euro (EUR).

To obtain accurate quotes on your euro (EUR) hedges, we invite you to contact our trading desk.

Mondial Change answers all your questions about currency risk hedging for your euro (EUR) operations

Are there minimum or maximum amounts for setting up euro (EUR) hedges?

The maximum amount of euro (EUR) hedges 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 euro (EUR) hedges?

Generally, we do not offer euro (EUR) hedges for maturities exceeding 24 months, but this can be considered on a case-by-case basis. Please contact our trading desk for a personalized study of your needs.

What are the setup fees for currency risk hedges in euro (EUR)?

All fees related to setting up euro (EUR) hedges are included in the exchange rate communicated to you before validating your operation. 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 euro (EUR) hedge?

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

Are there minimum amounts for early drawdowns on flexible forward contracts in euro (EUR)?

No minimum amount for drawdowns on your flexible forward contracts in euro (EUR). You can draw down autonomously on the online platform as many times as you wish between the contract initiation and the maturity date of your euro (EUR) forward contract.

What happens if at the maturity of my euro (EUR) forward contract I have not used the entirety of my contract?

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 your contract rate. Alternatively, you can request Mondial Change to extend your euro (EUR) contract by a few months to give you time to use it. Mondial Change and its partners, however, reserve the right not to accept extending the contract's maturity date.

What is the current interest rate on the euro (EUR)?
The current interest rate on the euro (EUR) is "Currency Rate".
YOUR HEDGING NEED IN EUR
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