What’s Ndf? Non-deliverable Ahead Contracts Explained – Posted in: FinTech

A non-deliverable forward is a practical monetary instrument that permits companies and buyers to manage currency exposure in countries with capital controls. It eliminates the need to physically change currency whereas still offering a reliable method to lock in future change rates. NDFs started within the Nineties due to capital controls in emerging markets. They helped handle currency dangers and allowed FX trading in non-convertible currencies. Consider a state of affairs where a borrower seeks…