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Covering Foreign Exchange Risk in IRR - Iranian Rial

Drapeau Covering Foreign Exchange Risk in IRR - Iranian Rial

Foreign Exchange Risk Coverage on the Iranian Rial (IRR) with Mondial Change

Mondial Change allows you to cover your foreign exchange risk on the Iranian Rial (IRR). The foreign exchange risk coverage on the Iranian Rial 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 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 Iranian Rial (IRR).

To obtain accurate quotes on your Iranian Rial (IRR) hedges, we invite you to contact our trading room.

Mondial Change answers all your questions about foreign exchange risk coverage for your operations in Iranian Rial (IRR)

Are there minimum or maximum amounts for setting up hedges in Iranian Rial (IRR)?

The maximum amount of hedges in Iranian Rial (IRR) 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 Iranian Rial (IRR)?

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

What are the setup fees for foreign exchange risk hedges in Iranian Rial (IRR)?

All fees related to the setup of hedges in Iranian Rial (IRR) are included in the exchange rate communicated to you before the validation of your operation. The hedging is done 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 Iranian Rial (IRR)?

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 Iranian Rial (IRR) hedging contracts if the EUR/IRR 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 Iranian Rial (IRR) 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 Iranian Rial (IRR)?

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

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