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Non-Deliverable Forward

   Also found in: Medical, Acronyms, Wikipedia 0.02 sec.
Non-Deliverable Forward
A forward contract on a low-volume or inconvertible currency that cannot be settled by delivery of the underlying. In a non-deliverable forward, the parties net the difference between the exchange rate listed in the contract and the spot rate, and one party pays the other that difference. They are usually settled in U.S. dollars. Multinational corporations sometimes use non-deliverable forwards to hedge against risk associated with comparatively illiquid currencies.


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The yuan rose slightly against the dollar on Thursday in benchmark offshore one-year non-deliverable forwards.
Foreign exchange instruments covered include spot, forwards, options, non-deliverable forwards.
While in March, non-deliverable forwards still implied a forecast of an 11.
 
 
 
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