Hedging Foreign Exchange Risk in JOD - Jordanian Dinar
Foreign Exchange Risk in Jordanian Dinar (JOD)
When conducting transactions with Jordan, you may need to send or receive payments in Jordanian Dinar. You are then naturally exposed to foreign exchange risk. Indeed, between the time you invoice your client in JOD and the time you collect the JOD or conversely between the time your supplier issues their invoice in JOD and you settle this invoice in JOD, the EUR/JOD rate may have moved in your favor or against you. It is to eliminate or minimize this risk of EUR/JOD rate movement (assuming your accounting currency is EUR) over a determined period that you can implement hedges on the EUR/JOD. By locking in the EUR/JOD rate in advance, you gain better visibility on your future cash flows in Jordanian Dinar (JOD) and secure your EUR/JOD budget rate.
Hedging Foreign Exchange Risk on the Jordanian Dinar (JOD) with Mondial Change
Mondial Change allows you to hedge your foreign exchange risk on the Jordanian Dinar (JOD). The foreign exchange risk hedging on the Jordanian Dinar can be done through fixed forward contracts or flexible forward contracts. You can schedule a meeting with our trading room. An expert market advisor will assist you in setting up your currency hedges on the Jordanian Dinar (JOD).
Mondial Change Answers All Your Questions About Foreign Exchange Risk Hedging for Your Operations in Jordanian Dinar (JOD)
Are there minimum or maximum amounts to set up hedges in Jordanian Dinar (JOD)?
The maximum amount of hedges in Jordanian Dinar (JOD) 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 Jordanian Dinar (JOD)?
Generally, we do not offer hedges in Jordanian Dinar (JOD) 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 hedges against foreign exchange risk in Jordanian Dinar (JOD)?
All fees related to setting up hedges in Jordanian Dinar (JOD) 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 Jordanian Dinar (JOD)?
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 hedging contracts in Jordanian Dinar (JOD) if the EUR/JOD 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 contracts in Jordanian Dinar (JOD) open. Based on the review of your financial statements, lines without margin calls may sometimes be granted.
Are there minimum amounts for early draws on flexible forward contracts in Jordanian Dinar (JOD)?
No minimum amount for draws on your flexible forward contracts in Jordanian Dinar (JOD). You can draw autonomously on the online platform as many times as you wish between the contract initiation and the maturity date of your forward contract in Jordanian Dinar (JOD).
What happens at the maturity of my forward contract in Jordanian Dinar (JOD) if 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 contract in Jordanian Dinar (JOD) by a few months to give you time to use it. Mondial Change and its partners reserve the right not to accept the postponement of the contract maturity date.
What is the current interest rate on the Jordanian Dinar (JOD)?
The current interest rate on the Jordanian Dinar (JOD) is "Currency Rate".
Are there carry points or discount points on forward contracts in Jordanian Dinar (JOD)?
It all depends on whether you are a buyer or seller of Jordanian Dinar (JOD) and against which currency you are trading the Jordanian Dinar. If we take an example against the euro: If you are a buyer of Jordanian Dinar (JOD) against the EUR, then there are report points because the interest rate of the Jordanian Dinar (JOD) is supérieur to that of the EUR. Conversely, if you are a seller of Jordanian Dinar (JOD) against the EUR, then there are déport points.