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Hedge Foreign Exchange Risk in MVR - Maldivian Rufiyaa

Drapeau Hedge Foreign Exchange Risk in MVR - Maldivian Rufiyaa

Foreign Exchange Risk Coverage on Maldivian Rufiyaa (MVR) with Mondial Change

Mondial Change allows you to hedge your foreign exchange risk on the Maldivian Rufiyaa (MVR). The foreign exchange risk coverage on the Maldivian Rufiyaa 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 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 transferred 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 foreign exchange hedges on the Maldivian Rufiyaa (MVR).

To obtain accurate quotes on your hedges in Maldivian Rufiyaa (MVR), we invite you to contact our trading desk.

Mondial Change answers all your questions about foreign exchange risk coverage for your operations in Maldivian Rufiyaa (MVR)

Are there minimum or maximum amounts to set up hedges in Maldivian Rufiyaa (MVR)?

The maximum amount of hedges in Maldivian Rufiyaa (MVR) 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 less than 10,000 EUR (or equivalent in other currencies).

What is the maximum possible maturity for hedges in Maldivian Rufiyaa (MVR)?

Generally, we do not offer hedges in Maldivian Rufiyaa (MVR) for maturities exceeding 24 months, but this can be considered on a case-by-case basis. Please contact our trading desk for a personalized study of your needs.

What are the setup fees for foreign exchange risk hedges in Maldivian Rufiyaa (MVR)?

All fees related to the setup of hedges in Maldivian Rufiyaa (MVR) are included in the exchange rate communicated to you before validating your operation. 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 Maldivian Rufiyaa (MVR)?

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 the conditions of your line, margin calls may be triggered on your hedging contracts in Maldivian Rufiyaa (MVR) if the EUR/MVR 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 Maldivian Rufiyaa (MVR) 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 Maldivian Rufiyaa (MVR)?

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

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