Non-Deliverable Forward is commonly used in some markets like foreign exchange and commodities. It is common in countries where the government has banned forward forex trading to avoid exchange rate volatility. In this article, I will provide you with a list of NDF currencies.
Contents
What is Non-Deliverable Forward?
NDF stands for Non-Deliverable Forward and it is a cash-settled in short-term forward contract between two parties, usually the NDF and the prevailing spot rates. The notional amount is not exchanged. NDFs are usually settled in cash and the U.S dollar is the commonly used currency. As such, the notional amount is not exchanged physically. NDFS are also known as Forward Contracts for Difference (FCDs).
Also Read: Closed Currencies List
Features of Non-Deliverable Forward (NDF)
NDFs have five main features. They include:
- Date fixing. It is the date agreed to compare the spot rate and NDF rate.
- Settlement date. It is the date the two parties involved agree to make difference between the exchange rates. One party must agree when to pay the other party while the other party agrees when to retrieve the difference of prices in cash.
- Non-Deliverable Forward Rate. This is an honest rate of currencies used in the exchange on the date of transaction.
- Spot rate. NDF must have an up-to-date rate which is provided by the Central Bank.
- Notional amount. It is the face value of the NDF that is agreed between the two parties.
Also Read: Freely Convertible Currencies List 2021
NDF Currencies List 2021
The following is non deliverable currency list in 2021 in different localities. The list is not much different from NDF currencies list in 2020.
Asia Pacific
| Currency Code | Currency |
|---|---|
| CNY | Chinese Renminbi |
| INR | Indian Rupee |
| MYR | Malaysian ringgit |
| TWD | Taiwan dollar |
| KRW | South Korean won |
| IDR | Indonesian rupiah |
| PHP | Philippine peso |
| VND | Vietnamese dong |
Europe, Middle East and Africa
| Currency Code | Currency |
|---|---|
| EGP | Egyptian pound |
| KZT | Kazakhstani tenge |
| NGN | Nigerian Naira |
Latin America
| Currency Code | Currency |
|---|---|
| ARS | Argentine peso |
| CLP | Chilean peso |
| CRC | Costa Rican colon |
| PEN | Peruvian Nuevo sol |
| COP | Colombian peso |
| UYU | Uruguayan peso |
| SRD | Surinmese dollar |
| VEF | Venezuelan bolivar |
| GTQ | Guatemalan quetzal |
| BRL | Brazilian real |
Non deliverable cross currency swap (NDXCS or NDS) is similar to a regular XCS, except that payments in one of the currencies are settled in another currency.
Final Word On the List of Non Deliverable Currencies
NDF currencies are prevalent in countries where the government has banned forward FX trading. This is done to avoid volatility in the exchange rates. As such, it is important for the government to use NDF in some markets like foreign exchange and commodities.
