Non-Deliverable Forward

(redirected from Non-Deliverable Forwards)

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.
References in periodicals archive ?
Derivative transactions representing futures transactions, swaps and non-deliverable forwards are measured at their fair values on the reporting date.
It offers access to FX spot, deliverable & non-deliverable forwards, swaps and options.
Second, the BI has undertaken supportive policy innovation with the launch of domestic non-deliverable forwards (DNDFs) settled in IDR.
extending the list of available currency operations with banks, including currency swaps and non-deliverable forwards
At the TechCrunch Disrupt Conference in San Francisco, the executive said "I never thought I would hear myself use this term but I really have to describe that news as fake news," adding that Goldman is working on a type of derivative for bitcoin because "clients want it." "The next stage of the exploration is what we call non-deliverable forwards, these are over the counter derivatives, they're settled in U.S.
BNY Mellon clients now have access to a full-service currency trading desk, offering spot, forwards, non-deliverable forwards as well as options.
The figures include positions held through non-deliverable forwards (NDFs).
Offshore one-year non-deliverable forwards contracts (NDFs), considered the best available proxy for forward-looking market expectations of the yuan's value, traded at 6.7964, 2.12 percent weaker than the midpoint.
The deal is intended to accelerate Bats' plans to offer trading of non-deliverable forwards for the foreign exchange market.
Three-month offshore non-deliverable forwards fell 0.2 per cent to 63.12.
Three-month offshore non-deliverable forwards fell 0.1 percent to 62.24 per dollar, data compiled by Bloomberg show.
In the offshore market, one-month non-deliverable forwards dropped 0.4% to 11,980, Bloomberg data showed.

Full browser ?