Hedge Foreign Exchange Risk in YER - Yemeni Rial

The maximum amount of hedges in Yemeni Rial (YER) 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).

All fees related to setting up hedges in Yemeni Rial (YER) 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 your line conditions, margin calls may be triggered on your Yemeni Rial (YER) hedging contracts if the EUR/YER rate (or any other pair on which you have validated a hedge) deteriorates beyond the variation margin or beyond your OTM. You must then deposit funds as collateral to keep your Yemeni Rial (YER) contracts 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 Yemeni Rial (YER). You can draw independently on the online platform as many times as you wish between the contract initiation and the maturity date of your Yemeni Rial (YER) forward contract.

In this case, there are two possibilities. You can resell 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 Yemeni Rial (YER) contract by 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 maturity date.

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