Hedge Foreign Exchange Risk in MAD - Moroccan Dirham
The Foreign Exchange Risk in Moroccan Dirham (MAD)
When conducting transactions with Morocco, you may need to send or receive payments in Moroccan Dirham. You are then naturally exposed to foreign exchange risk. Indeed, between the time you invoice your client in MAD and the time you collect the MAD, or conversely between the time your supplier issues their invoice in MAD and you settle this invoice in MAD, the EUR/MAD rate may have moved in your favor or against you. It is to eliminate or minimize this risk of EUR/MAD rate movement (assuming your accounting currency is EUR) over a determined period that you can implement hedges on the EUR/MAD. By locking in the EUR/MAD rate in advance, you gain better visibility on your future cash flows in Moroccan Dirham (MAD) and secure your EUR/MAD budget rate.
Foreign Exchange Risk Coverage on Moroccan Dirham (MAD) with Mondial Change
Mondial Change allows you to hedge your foreign exchange risk on the Moroccan Dirham (MAD). The foreign exchange risk coverage on the Moroccan Dirham can be achieved 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 Moroccan Dirham (MAD).
Mondial Change Answers All Your Questions on Foreign Exchange Risk Coverage for Your Operations in Moroccan Dirham (MAD)
Are there minimum or maximum amounts for setting up hedges in Moroccan Dirham (MAD)?
The maximum amount of hedges in Moroccan Dirham (MAD) 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 Moroccan Dirham (MAD)?
Generally, we do not offer hedges in Moroccan Dirham (MAD) 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 Moroccan Dirham (MAD)?
All fees related to setting up hedges in Moroccan Dirham (MAD) 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 Moroccan Dirham (MAD)?
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 Moroccan Dirham (MAD) hedging contracts if the EUR/MAD 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 Moroccan Dirham (MAD) contracts open. Based on the review of your financial statements, lines without margin calls can sometimes be granted.
Are there minimum amounts for early drawdowns on flexible forward contracts in Moroccan Dirham (MAD)?
No minimum amount for drawdowns on your flexible forward contracts in Moroccan Dirham (MAD). 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 Moroccan Dirham (MAD).
What happens if at the maturity of my forward contract in Moroccan Dirham (MAD) 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 the potential exchange loss if the exchange rate at the time of resale is less favorable than your contract rate. Alternatively, you can ask Mondial Change to extend your Moroccan Dirham (MAD) contract by a few months to give you time to use it. Mondial Change and its partners reserve the right not to accept the postponement of the contract maturity date.
What is the current interest rate on the Moroccan Dirham (MAD)?
The current interest rate on the Moroccan Dirham (MAD) is "Currency Rate".
Are there carry points or discount points on forward contracts in Moroccan Dirham (MAD)?
It all depends on whether you are a buyer or seller of Moroccan Dirham (MAD) and against which currency you are trading the Moroccan Dirham. If we take an example against the euro: If you are a buyer of Moroccan Dirham (MAD) against the EUR, then there are report points because the interest rate of the Moroccan Dirham (MAD) is supérieur to that of the EUR. Conversely, if you are a seller of Moroccan Dirham (MAD) against the EUR, then there are déport points.