Covering Foreign Exchange Risk in VEF - Venezuelan Bolívar

The maximum amount of hedges in Venezuelan Bolívar (VEF) that you can validate primarily depends on the size of the forward exchange line granted to you. The conditions of the granted line depend on the review of your financial statements. As for minimum sizes, we generally do not take hedges for amounts below 10,000 EUR (or equivalent in other currencies).

All fees related to setting up hedges in Venezuelan Bolívar (VEF) are included in the exchange rate communicated to you before the validation of your transaction. The hedging is done by 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 the conditions of your line, margin calls may be triggered on your hedging contracts in Venezuelan Bolívar (VEF) if the EUR/VEF 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 Venezuelan Bolívar (VEF) open. Based on the review of your financial statements, lines without margin calls can sometimes be granted.

No minimum amount for drawdowns on your flexible forward contracts in Venezuelan Bolívar (VEF). You can draw independently 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 Venezuelan Bolívar (VEF).

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 the rate of your contract. Alternatively, you can request Mondial Change to extend your contract in Venezuelan Bolívar (VEF) for a few months to give you time to use it. Mondial Change and its partners, however, reserve the right not to accept postponing the contract's maturity date.

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