Asian Non-Deliverable Forward (NDF)

Features and Benefits

• Conceptually similar to forward foreign exchange contracts; the difference is that they do not require physical delivery of the non-convertible currency
• A (notional) principal amount, forward exchange rate and forward date are all agreed at the contract's inception. Upon maturity, the difference between the contracted forward rate and the prevailing spot rate is settled in the convertible currency
• Cash-settled currency forwards which provide an offshore mechanism to hedge currencies which were previously considered "unhedgeable"; either due to emerging markets suffering from illiquidity or regulatory/settlement constraints
• An efficient method of managing FX exposures for non-convertible currencies since there is no actual exchange of principal funds 
• No bid/offer spread on maturity as the contracts are normally settled against a fixed rate

Rates

We offer the facility for the following Asian currencies:

• Chinese Renminbi (CNY)
• Indian Rupee (INR)
• Indonesian Rupiah (IDR)
• New Taiwanese Dollar (TWD)
• Philippine Peso (PHP)
• South Korean Won (KRW)

Apply Now

• To apply, all corporations have to set up a FX Line with us. The FX line states the maximum amount and tenure that you may contract at any one time
• If your business currently has credit facilities (e.g. Letter of Credit, Trust Receipts or Overdraft line) with us, you can arrange with your banker to restructure the credit line to accommodate the additional FX facility