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Hedge Foreign Exchange Risk in MMK - Myanmar Kyat

Drapeau Hedge Foreign Exchange Risk in MMK - Myanmar Kyat

Foreign Exchange Risk Coverage on Myanmar Kyat (MMK) with Mondial Change

Mondial Change allows you to hedge your foreign exchange risk on the Myanmar Kyat (MMK). The foreign exchange risk coverage on the Myanmar Kyat can currently 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 being paid in the non-convertible currency. You can schedule a meeting with our trading room. A market expert advisor will assist you in setting up your foreign exchange hedges on the Myanmar Kyat (MMK).

To obtain accurate quotes on your Myanmar Kyat (MMK) hedges, we invite you to contact our trading room.

Mondial Change answers all your questions about foreign exchange risk coverage for your operations in Myanmar Kyat (MMK)

Are there minimum or maximum amounts for setting up hedges in Myanmar Kyat (MMK)?

The maximum amount of hedges in Myanmar Kyat (MMK) that you can validate primarily depends on the size of the forward exchange line granted to you. The granted line conditions 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 Myanmar Kyat (MMK)?

Generally, we do not offer hedges in Myanmar Kyat (MMK) for maturities exceeding 24 months, but this can be considered on a case-by-case basis. Please contact our trading room for a personalized assessment of your needs.

What are the setup fees for foreign exchange risk hedges in Myanmar Kyat (MMK)?

All fees related to setting up hedges in Myanmar Kyat (MMK) are included in the exchange rate communicated to you before validating your transaction. The hedging is done by 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 Myanmar Kyat (MMK)?

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 Myanmar Kyat (MMK) hedging contracts if the EUR/MMK 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 Myanmar Kyat (MMK) contracts 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 Myanmar Kyat (MMK)?

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

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