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Hedge your exposure in restricted currencies through cash settled NDF contracts.
Customise contract specifications to suit your needs.
No withholding tax and no custody requirements, unlike trading in securities.
Non-Deliverable Forward (NDF) is conceptually similar to foreign exchange forward contract; the difference is that it does not require physical delivery of the non-convertible currency. It is an efficient method of managing FX exposures for non-convertible currencies since there is no actual exchange of principal funds.
A (notional) principal amount, forward exchange rate and forward date are all agreed at the contract's inception. At maturity, the difference between the contracted forward rate and the prevailing spot rate is settled in the convertible currency. Such cash-settled currency forwards provide an offshore mechanism to hedge currencies which were previously considered "unhedgeable"; either due to emerging markets suffering from illiquidity or regulatory/settlement constraints.
Speak to our treasury specialist on other available currencies.
Manage your foreign exchange risks and cashflow more efficiently.
Manage your currency exposure through the use of foreign exchange options and bundled strategies.
Currency exchange for foreign currency needs.
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