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Hedge Foreign Exchange Risk in PYG - Paraguayan Guarani

Drapeau Hedge Foreign Exchange Risk in PYG - Paraguayan Guarani

Foreign Exchange Risk Coverage on Paraguayan Guarani (PYG) with Mondial Change

Mondial Change enables you to hedge your foreign exchange risk on Paraguayan Guarani (PYG). Currently, foreign exchange risk coverage on Paraguayan Guarani 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 likelihood of a currency revaluation (or devaluation). 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 exchanged 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 Paraguayan Guarani (PYG).

For accurate quotes on your hedges in Paraguayan Guarani (PYG), we invite you to contact our trading desk.

Mondial Change Answers All Your Questions on Foreign Exchange Risk Coverage for Your Operations in Paraguayan Guarani (PYG)

Are there minimum or maximum amounts for setting up hedges in Paraguayan Guarani (PYG)?

The maximum amount of hedges in Paraguayan Guarani (PYG) 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 Paraguayan Guarani (PYG)?

Generally, we do not offer hedges in Paraguayan Guarani (PYG) 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 Paraguayan Guarani (PYG)?

All fees related to setting up hedges in Paraguayan Guarani (PYG) are included in the exchange rate communicated to you before the validation of your operation. 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 Paraguayan Guarani (PYG)?

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 hedging contracts in Paraguayan Guarani (PYG) if the EUR/PYG rate (or any other pair on which you have validated a hedge) deteriorates beyond the variation margin or beyond your OTM. In such cases, you must deposit funds as collateral to keep your contracts in Paraguayan Guarani (PYG) 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 Paraguayan Guarani (PYG)?

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

YOUR HEDGING NEED IN PYG
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