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Hedge Currency Risk in KYR - Kyrgyzstani Som

Currency Risk Hedging on the Kyrgyzstani Som (KYR) with Global Exchange

Global Exchange enables you to hedge your currency risk on the Kyrgyzstani Som (KYR). Currency risk hedging on the Kyrgyzstani Som can currently only be executed through NDF (non-deliverable forwards) contracts. The NDF is a hedging instrument used to cover your currency 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 likelihood of a currency revaluation (or devaluation). 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 cash flow in the non-convertible currency. You can schedule a meeting with our trading desk. A market expert advisor will assist you in setting up your currency hedges on the Kyrgyzstani Som (KYR).

To obtain accurate quotes on your hedges in Kyrgyzstani Som (KYR), we invite you to contact our trading desk.

Global Exchange answers all your questions about currency risk hedging for your operations in Kyrgyzstani Som (KYR)

Are there minimum or maximum amounts for setting up hedges in Kyrgyzstani Som (KYR)?

The maximum amount of hedges in Kyrgyzstani Som (KYR) 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 Kyrgyzstani Som (KYR)?

Generally, we do not offer hedges in Kyrgyzstani Som (KYR) for maturities exceeding 24 months, but this can be reviewed on a case-by-case basis. Please contact our trading desk for a personalized assessment of your needs.

What are the setup fees for currency risk hedging in Kyrgyzstani Som (KYR)?

All fees related to setting up hedges in Kyrgyzstani Som (KYR) are included in the exchange rate communicated to you before validating your transaction. The hedging is done by 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 Kyrgyzstani Som (KYR)?

Again, this depends on the conditions of your forward exchange line. Thanks to its network of partners, Global Exchange 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 Kyrgyzstani Som (KYR) if the EUR/KYR 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 Kyrgyzstani Som (KYR) open. Based on the review of your financial statements, lines without margin calls can sometimes be granted.

Are there forward points or swap points on forward contracts in Kyrgyzstani Som (KYR)?

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

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