⇽ Currencies list

Covering Foreign Exchange Risk in GMD - Gambian Dalasi

Drapeau Covering Foreign Exchange Risk in GMD - Gambian Dalasi

The Foreign Exchange Risk in Gambian Dalasi (GMD)

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

Foreign Exchange Risk Coverage on Gambian Dalasi (GMD) with Mondial Change

Mondial Change allows you to cover your foreign exchange risk on Gambian Dalasi (GMD). The foreign exchange risk coverage on Gambian Dalasi can currently only be done 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 cover your foreign exchange risk without any flow being paid in the non-convertible currency. You can schedule a meeting with our trading desk. An expert market advisor will assist you in setting up your foreign exchange hedges on Gambian Dalasi (GMD).

To obtain accurate quotes on your Gambian Dalasi (GMD) hedges, we invite you to contact our trading desk.

Mondial Change Answers All Your Questions on Foreign Exchange Risk Coverage for Your Gambian Dalasi (GMD) Operations

Are there minimum or maximum amounts for setting up hedges in Gambian Dalasi (GMD)?

The maximum amount of hedges in Gambian Dalasi (GMD) 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 Gambian Dalasi (GMD)?

Generally, we do not offer hedges in Gambian Dalasi (GMD) 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 hedges against foreign exchange risk in Gambian Dalasi (GMD)?

All fees related to setting up hedges in Gambian Dalasi (GMD) 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 Gambian Dalasi (GMD)?

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 Gambian Dalasi (GMD) hedging contracts if the EUR/GMD 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 Gambian Dalasi (GMD) contracts open. Based on your financial statements, lines without margin calls can sometimes be granted.

What is the current interest rate on Gambian Dalasi (GMD)?
The current interest rate on Gambian Dalasi (GMD) is "Currency Rate".

Are there carry points or discount points on NDF contracts in Gambian Dalasi (GMD)?

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

YOUR HEDGING NEED IN GMD
Ellipse
Ellipse