Hedging foreign exchange risk in RSD - Serbian dinar
The foreign exchange risk in Serbian dinar (RSD)
When conducting transactions with Serbia, you may need to send or receive payments in Serbian dinar. You are then naturally exposed to foreign exchange risk. Indeed, between the time you invoice your client in RSD and the time you collect the RSD, or conversely between the time your supplier issues their invoice in RSD and you settle this invoice in RSD, the EUR/RSD rate may have moved in your favor or against you. It is to eliminate or minimize this risk of EUR/RSD rate movement (assuming your accounting currency is EUR) over a determined period that you can implement hedges on the EUR/RSD. By locking in the EUR/RSD rate in advance, you gain better visibility on your future cash flows in Serbian dinar (RSD) and secure your EUR/RSD budget rate.
Foreign exchange risk coverage on the Serbian dinar (RSD) with Mondial Change
Mondial Change allows you to hedge your foreign exchange risk on the Serbian dinar (RSD). The foreign exchange risk coverage on the Serbian dinar can be done 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 Serbian dinar (RSD).
Mondial Change answers all your questions on foreign exchange risk coverage for your operations in Serbian dinar (RSD)
Are there minimum or maximum amounts for setting up hedges in Serbian dinar (RSD)?
The maximum amount of hedges in Serbian dinar (RSD) 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 Serbian dinar (RSD)?
Generally, we do not offer hedges in Serbian dinar (RSD) 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 Serbian dinar (RSD)?
All fees related to setting up hedges in Serbian dinar (RSD) are included in the exchange rate communicated to you before validating 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 margin deposit required to take a hedge in Serbian dinar (RSD)?
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 margin deposit. Depending on your line conditions, margin calls may be triggered on your Serbian dinar (RSD) hedging contracts if the EUR/RSD 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 Serbian dinar (RSD) contracts open. Based on your financial statements, lines without margin calls can sometimes be granted.
Are there minimum amounts for early drawdowns on flexible forward contracts in Serbian dinar (RSD)?
No minimum amount for drawdowns on your flexible forward contracts in Serbian dinar (RSD). 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 Serbian dinar (RSD).
What happens at the maturity of my forward contract in Serbian dinar (RSD) if 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 request Mondial Change to extend your Serbian dinar (RSD) contract by a few months to give you time to use it. Mondial Change and its partners reserve the right not to accept the extension of the contract maturity date.
What is the current interest rate on the Serbian dinar (RSD)?
The current interest rate on the Serbian dinar (RSD) is "Currency Rate".
Are there carry points or discount points on forward contracts in Serbian dinar (RSD)?
It all depends on whether you are a buyer or seller of Serbian dinar (RSD) and against which currency you are trading the Serbian dinar. Taking an example against the euro: If you are a buyer of Serbian dinar (RSD) against the EUR, then there are report points because the interest rate of the Serbian dinar (RSD) is supérieur compared to that of the EUR. Conversely, if you are a seller of Serbian dinar (RSD) against the EUR, then there are déport points.