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Our list of non-deliverable currencies in 2024 is essential for providing a comprehensive understanding of current currency restrictions and their implications for international trade and financial transactions.
Restricted currencies can be classified into three categories: Non-convertible currencies – Cannot be freely exchanged outside the country (e.g., North Korean won, Cuban peso). Partially convertible currencies – Excha...
NDF markets developed for emerging markets with capital controls, where the currencies could not be delivered offshore. Most NDFs are cash-settled in US dollars (USD).
Non-deliverable forward (NDF) markets in many Asian emerging market currencies are large, rapidly growing, and often exceed onshore markets in transaction volume.
Learn about the key differences between deliverable and non-deliverable forward contracts and how each one can be used to speculate on currency pairs.
Non-deliverable forwards are financial contracts used to hedge or speculate on currencies that are not freely traded due to capital controls or market restrictions.
Monetary authorities naturally regard these offshore speculative trades and their possible cross-border spillovers with suspicion, and the general trend since the 1997–98 crisis has been to further restrict onshore-of...
An NDF is a foreign exchange forward contract on a notional amount where no physical settlement of the two currencies takes place at maturity. Instead a net cash settlement is made by one party to another based on the...
In many cases, offshore markets have evolved – either a 2 tier deliverable market (e.g. THB swap) or a non-deliverable forward market (e.g. KRW). This enables offshore counterparties to participate in local products a...
Although offshore currency trading through NDF enjoys growing interest among investors, it’s not free from controversies. Trading in a foreign location makes it particularly challenging for regulators like RBI and SEB...
