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Hedge Foreign Exchange Risk in LBP - Lebanese Pound

Drapeau Hedge Foreign Exchange Risk in LBP - Lebanese Pound

Foreign Exchange Risk Coverage on the Lebanese Pound (LBP) with Mondial Change

Mondial Change allows you to hedge your foreign exchange risk on the Lebanese Pound (LBP). The foreign exchange risk coverage on the Lebanese Pound 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 hedge your foreign exchange risk without any flow being paid 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 Lebanese Pound (LBP).

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

Mondial Change answers all your questions about foreign exchange risk coverage for your operations in Lebanese Pound (LBP)

Are there minimum or maximum amounts to set up hedges in Lebanese Pound (LBP)?

The maximum amount of hedges in Lebanese Pound (LBP) 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 maturity possible for hedges in Lebanese Pound (LBP)?

Generally, we do not offer hedges in Lebanese Pound (LBP) 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 hedges against foreign exchange risk in Lebanese Pound (LBP)?

All fees related to setting up hedges in Lebanese Pound (LBP) are included in the exchange rate communicated to you before validating your operation. The hedge is taken over the 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 Lebanese Pound (LBP)?

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 Lebanese Pound (LBP) if the EUR/LBP 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 maintain your contracts in Lebanese Pound (LBP) open. Based on the review of your financial statements, lines without margin calls can sometimes be granted.

Are there forward points or backward points on forward contracts in Lebanese Pound (LBP)?

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

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