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Hedging Foreign Exchange Risk in IQD - Iraqi Dinar

Drapeau Hedging Foreign Exchange Risk in IQD - Iraqi Dinar

Foreign Exchange Risk Hedging on the Iraqi Dinar (IQD) with Mondial Change

Mondial Change allows you to hedge your foreign exchange risk on the Iraqi Dinar (IQD). Currently, foreign exchange risk hedging on the Iraqi Dinar can only be conducted 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 room. An expert market advisor will assist you in setting up your foreign exchange hedges on the Iraqi Dinar (IQD).

To obtain accurate quotes on your Iraqi Dinar (IQD) hedges, we invite you to contact our trading room.

Mondial Change Answers All Your Questions on Foreign Exchange Risk Hedging for Your Iraqi Dinar (IQD) Operations

Are there minimum or maximum amounts for setting up hedges in Iraqi Dinar (IQD)?

The maximum amount of hedges in Iraqi Dinar (IQD) 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 Iraqi Dinar (IQD)?

Generally, we do not offer hedges in Iraqi Dinar (IQD) 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 foreign exchange risk hedges in Iraqi Dinar (IQD)?

All fees related to setting up hedges in Iraqi Dinar (IQD) 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 Iraqi Dinar (IQD)?

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 Iraqi Dinar (IQD) hedging contracts if the EUR/IQD 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 Iraqi Dinar (IQD) contracts open. Based on a review of your financial statements, lines without margin calls can sometimes be granted.

Are there forward points or backward points on forward contracts in Iraqi Dinar (IQD)?

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

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