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Hedge Foreign Exchange Risk in MNT - Mongolian Tugrik

Drapeau Hedge Foreign Exchange Risk in MNT - Mongolian Tugrik

Foreign Exchange Risk Coverage on Mongolian Tugrik (MNT) with Mondial Change

Mondial Change allows you to hedge your foreign exchange risk on the Mongolian Tugrik (MNT). Currently, foreign exchange risk coverage on the Mongolian Tugrik can only be achieved 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 cash flow in the non-convertible currency. 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 Mongolian Tugrik (MNT).

To obtain accurate quotes on your Mongolian Tugrik (MNT) hedges, we invite you to contact our trading desk.

Mondial Change Answers All Your Questions on Foreign Exchange Risk Coverage for Your Operations in Mongolian Tugrik (MNT)

Are there minimum or maximum amounts for setting up hedges in Mongolian Tugrik (MNT)?

The maximum amount of hedges in Mongolian Tugrik (MNT) 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 Mongolian Tugrik (MNT)?

Generally, we do not offer hedges in Mongolian Tugrik (MNT) 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 foreign exchange risk hedges in Mongolian Tugrik (MNT)?

All fees related to setting up hedges in Mongolian Tugrik (MNT) are included in the exchange rate communicated to you before the validation of your transaction. The hedge is taken over the 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 Mongolian Tugrik (MNT)?

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 Mongolian Tugrik (MNT) hedging contracts if the EUR/MNT 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 Mongolian Tugrik (MNT) contracts open. Based on the review of your financial statements, lines without margin calls may sometimes be granted.

Are there forward points or discount points on forward contracts in Mongolian Tugrik (MNT)?

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

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