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Hedging Foreign Exchange Risk in PKR - Pakistani Rupee

Drapeau Hedging Foreign Exchange Risk in PKR - Pakistani Rupee

Foreign Exchange Risk Coverage on the Pakistani Rupee (PKR) with Mondial Change

Mondial Change allows you to hedge your foreign exchange risk on the Pakistani Rupee (PKR). The foreign exchange risk coverage on the Pakistani Rupee 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'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 flow being paid 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 Pakistani Rupee (PKR).

To obtain accurate quotes on your Pakistani Rupee (PKR) hedges, we invite you to contact our trading desk.

Mondial Change answers all your questions on foreign exchange risk coverage for your operations in Pakistani Rupee (PKR)

Are there minimum or maximum amounts for setting up hedges in Pakistani Rupee (PKR)?

The maximum amount of hedges in Pakistani Rupee (PKR) 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 less than 10,000 EUR (or equivalent in other currencies).

What is the maximum possible maturity for hedges in Pakistani Rupee (PKR)?

Generally, we do not offer hedges in Pakistani Rupee (PKR) 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 hedges against foreign exchange risk in Pakistani Rupee (PKR)?

All fees related to the setup of hedges in Pakistani Rupee (PKR) are included in the exchange rate communicated to you before the validation of your operation. The hedging is done by phone with an operator from the trading desk. No fees are applied to the use of your hedges.

Is a security deposit required to take a hedge in Pakistani Rupee (PKR)?

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 Pakistani Rupee (PKR) hedging contracts if the EUR/PKR rate (or any other pair on which you have validated a hedge) deteriorates beyond the variation margin or beyond your OTM. In such a case, you must deposit funds as collateral to maintain your Pakistani Rupee (PKR) 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 Pakistani Rupee (PKR)?

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

YOUR HEDGING NEED IN PKR
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