Covering Foreign Exchange Risk in MUR - Mauritian Rupee
The Foreign Exchange Risk in Mauritian Rupee (MUR)
When conducting transactions with Mauritius, you may need to send or receive payments in Mauritian Rupee. You are then naturally exposed to foreign exchange risk. Indeed, between the time you invoice your client in MUR and the time you collect the MUR, or conversely between the time your supplier issues their invoice in MUR and you settle this invoice in MUR, the EUR/MUR rate may have moved in your favor or against you. To eliminate or minimize this risk of EUR/MUR rate movement (assuming your accounting currency is EUR) over a determined period, you can implement hedges on the EUR/MUR. By locking in the EUR/MUR rate in advance, you gain better visibility on your future cash flows in Mauritian Rupee (MUR) and secure your EUR/MUR budget rate.
Foreign Exchange Risk Coverage on the Mauritian Rupee (MUR) with Mondial Change
Mondial Change allows you to cover your foreign exchange risk on the Mauritian Rupee (MUR). The foreign exchange risk coverage on the Mauritian Rupee can be done through fixed forward contracts or flexible forward contracts. You can schedule a meeting with our trading desk. An expert market advisor will assist you in setting up your foreign exchange hedges on the Mauritian Rupee (MUR).
Mondial Change Answers All Your Questions on Foreign Exchange Risk Coverage for Your Operations in Mauritian Rupee (MUR)
Are there minimum or maximum amounts for setting up hedges in Mauritian Rupee (MUR)?
The maximum amount of hedges in Mauritian Rupee (MUR) 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 Mauritian Rupee (MUR)?
Generally, we do not offer hedges in Mauritian Rupee (MUR) for maturities exceeding 24 months, but this can be considered on a case-by-case basis. Please contact our trading desk for a personalized assessment of your needs.
What are the setup fees for foreign exchange risk hedges in Mauritian Rupee (MUR)?
All fees related to setting up hedges in Mauritian Rupee (MUR) are included in the exchange rate communicated to you before validating your transaction. The hedge is taken 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 Mauritian Rupee (MUR)?
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 Mauritian Rupee (MUR) hedging contracts if the EUR/MUR rate (or any other pair on which you have validated a hedge) deteriorates beyond the variation margin or beyond your OTM. You must then deposit funds as collateral to keep your Mauritian Rupee (MUR) contracts open. Based on your financial statements, lines without margin calls may sometimes be granted.
Are there minimum amounts for early drawdowns on flexible forward contracts in Mauritian Rupee (MUR)?
No minimum amount for drawdowns on your flexible forward contracts in Mauritian Rupee (MUR). 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 Mauritian Rupee (MUR).
What happens at the maturity of my forward contract in Mauritian Rupee (MUR) 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 any 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 Mauritian Rupee (MUR) contract for a few months to give you time to use it. Mondial Change and its partners reserve the right not to accept the extension of the contract maturity date.
What is the current interest rate on the Mauritian Rupee (MUR)?
The current interest rate on the Mauritian Rupee (MUR) is "Currency Rate".
Are there carry points or discount points on forward contracts in Mauritian Rupee (MUR)?
It all depends on whether you are a buyer or seller of Mauritian Rupee (MUR) and against which currency you are trading the Mauritian Rupee. For example, against the euro: If you are a buyer of Mauritian Rupee (MUR) against the EUR, then there are report points because the interest rate of the Mauritian Rupee (MUR) is supérieur to that of the EUR. Conversely, if you are a seller of Mauritian Rupee (MUR) against the EUR, then there are déport points.