Foreign exchange risks hedging

MLC “Frontiers”, LLC is one of the active and reliable operators of the domestic market of derivative financial instruments. We are able to offer our clients (MFIs and commercial banks) both typical transactions and non-standard solutions.

Currency risk is the risk of losses due to unfavorable changes in exchange rates. Companies that conduct operations in foreign currency (for example, obtaining loans in foreign currency from external partners, etc.) are at risk.

Currency risk hedging instruments:         

  • Currency swaps;
  • Back-to-back loans.

Currency pairs:

  • KGS / USD
  • KGS / EUR


Advantages of hedging for MFIs:

  • Avoidance of unexpected losses and / or revaluations of the currency position;
  • Financing in the desired currency secured by cash;
  • No need to divert company funds to purchase currency;
  • Savings on conversion.

Terms of transactions are negotiated individually depending on the situation on the financial market.