Hedge Foreign Exchange Risk in TND - Tunisian Dinar
Foreign Exchange Risk in Tunisian Dinar (TND)
When conducting transactions with Tunisia, you may need to send or receive payments in Tunisian Dinar. You are then naturally exposed to foreign exchange risk. Indeed, between the time you invoice your client in TND and the time you collect the TND, or conversely between the time your supplier issues their invoice in TND and you settle this invoice in TND, the EUR/TND rate may have moved in your favor or against you. To eliminate or minimize this risk of EUR/TND rate movement (assuming your accounting currency is EUR) over a determined period, you can implement hedges on the EUR/TND. By locking in the EUR/TND rate in advance, you gain better visibility on your future cash flows in Tunisian Dinar (TND) and secure your EUR/TND budget rate.
Foreign Exchange Risk Coverage on Tunisian Dinar (TND) with Mondial Change
Mondial Change allows you to hedge your foreign exchange risk on the Tunisian Dinar (TND). The foreign exchange risk coverage on the Tunisian Dinar can be done through fixed forward contracts or flexible forward contracts. You can schedule a meeting with our trading room. An expert market advisor will assist you in setting up your foreign exchange hedges on the Tunisian Dinar (TND).
Mondial Change Answers All Your Questions on Foreign Exchange Risk Coverage for Your Operations in Tunisian Dinar (TND)
Are there minimum or maximum amounts for setting up hedges in Tunisian Dinar (TND)?
The maximum amount of hedges in Tunisian Dinar (TND) 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 Tunisian Dinar (TND)?
Generally, we do not offer hedges in Tunisian Dinar (TND) 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 Tunisian Dinar (TND)?
All fees related to setting up hedges in Tunisian Dinar (TND) are included in the exchange rate communicated to you before validating your transaction. The hedge is taken over the 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 Tunisian Dinar (TND)?
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 Tunisian Dinar (TND) if the EUR/TND 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 Tunisian Dinar (TND) open. Based on the review of your financial statements, lines without margin calls may sometimes be granted.
Are there minimum amounts for early drawdowns on flexible forward contracts in Tunisian Dinar (TND)?
No minimum amount for drawdowns on your flexible forward contracts in Tunisian Dinar (TND). You can draw down autonomously on the online platform as many times as you wish between the time of contract initiation and the maturity date of your forward contract in Tunisian Dinar (TND).
What happens at the maturity of my forward contract in Tunisian Dinar (TND) 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 any 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 contract in Tunisian Dinar (TND) by a few months to give you time to use it. Mondial Change and its partners reserve the right not to accept postponing the contract's maturity date.
What is the current interest rate on the Tunisian Dinar (TND)?
The current interest rate on the Tunisian Dinar (TND) is "Currency Rate".
Are there carry points or discount points on forward contracts in Tunisian Dinar (TND)?
It all depends on whether you are a buyer or seller of Tunisian Dinar (TND) and against which currency you are trading the Tunisian Dinar. If we take an example against the euro: If you are a buyer of Tunisian Dinar (TND) against the EUR, then there are report points because the interest rate of the Tunisian Dinar (TND) is supérieur to that of the EUR. Conversely, if you are a seller of Tunisian Dinar (TND) against the EUR, then there are déport points.