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Hedge Currency Risk in JEP - Jersey Pound

Currency Risk Hedging on the Jersey Pound (JEP) with Mondial Change

Mondial Change allows you to hedge your currency risk on the Jersey Pound (JEP). Currency risk hedging on the Jersey Pound can currently only be done through NDF (non-deliverable forwards) contracts. The NDF is a hedging instrument used to cover your currency risk on partially or non-convertible currencies. On 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 currency risk without any flow being paid in the non-convertible currency. You can schedule a meeting with our trading room. A market expert advisor will assist you in setting up your currency hedges on the Jersey Pound (JEP).

To obtain accurate quotes on your Jersey Pound (JEP) hedges, we invite you to contact our trading room.

Mondial Change answers all your questions about currency risk hedging for your Jersey Pound (JEP) operations

Are there minimum or maximum amounts for setting up hedges in Jersey Pound (JEP)?

The maximum amount of hedges in Jersey Pound (JEP) 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 Jersey Pound (JEP)?

Generally, we do not offer hedges in Jersey Pound (JEP) 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 currency risk hedging in Jersey Pound (JEP)?

All fees related to setting up hedges in Jersey Pound (JEP) are included in the exchange rate communicated to you before validating 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 Jersey Pound (JEP)?

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's conditions, margin calls may be triggered on your Jersey Pound (JEP) hedging contracts if the EUR/JEP 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 Jersey Pound (JEP) 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 Jersey Pound (JEP)?

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

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