Hedge Foreign Exchange Risk in VUV - Vanuatu Vatu

The maximum amount of hedges in Vanuatu Vatu (VUV) 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. As for minimum sizes, we generally do not take hedges for amounts less than 10,000 EUR (or equivalent in other currencies).

All fees related to the setup of hedges in Vanuatu Vatu (VUV) are included in the exchange rate communicated to you before validating your operation. The hedge is taken over the phone with a trading desk operator. No fees are applied to the use of your hedges.

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 Vanuatu Vatu (VUV) hedge contracts if the EUR/VUV 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 Vanuatu Vatu (VUV) contracts open. Based on the review of your financial statements, lines without margin calls may sometimes be granted.

There is no minimum amount for drawdowns on your flexible forward contracts in Vanuatu Vatu (VUV). You can draw down autonomously on the online platform as many times as you wish between the contract initiation and the maturity date of your forward contract in Vanuatu Vatu (VUV).

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 ask Mondial Change to extend your Vanuatu Vatu (VUV) 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.

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