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Hedge Foreign Exchange Risk in SLL - Sierra Leonean Leone

Drapeau Hedge Foreign Exchange Risk in SLL - Sierra Leonean Leone

Foreign Exchange Risk Coverage on the Sierra Leonean Leone (SLL) with Mondial Change

Mondial Change allows you to hedge your foreign exchange risk on the Sierra Leonean Leone (SLL). The foreign exchange risk coverage on the Sierra Leonean Leone 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 cash 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 Sierra Leonean Leone (SLL).

To obtain accurate quotes on your hedges in Sierra Leonean Leone (SLL), we invite you to contact our trading desk.

Mondial Change answers all your questions about foreign exchange risk coverage for your operations in Sierra Leonean Leone (SLL)

Are there minimum or maximum amounts for setting up hedges in Sierra Leonean Leone (SLL)?

The maximum amount of hedges in Sierra Leonean Leone (SLL) that 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 Sierra Leonean Leone (SLL)?

Generally, we do not offer hedges in Sierra Leonean Leone (SLL) for maturities exceeding 24 months, but this can be considered on a case-by-case basis. Please contact our trading desk for a personalized study of your needs.

What are the setup fees for foreign exchange risk hedges in Sierra Leonean Leone (SLL)?

All fees related to setting up hedges in Sierra Leonean Leone (SLL) 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 Sierra Leonean Leone (SLL)?

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 Sierra Leonean Leone (SLL) if the EUR/SLL 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 contracts in Sierra Leonean Leone (SLL) open. Based on the review of your financial statements, lines without margin calls may sometimes be granted.

Are there forward points or discount points on forward contracts in Sierra Leonean Leone (SLL)?

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

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