NDF Currencies List

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.

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).

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.

NDF Currencies List 2021

The following is a list of NDF list in 2021 in different localities.

Asia Pacific

Currency CodeCurrency
CNYChinese Renminbi
INRIndian Rupee
MYRMalaysian ringgit
TWDTaiwan dollar
KRWSouth Korean won
IDRIndonesian rupiah
PHPPhilippine peso
VNDVietnamese dong

Europe, Middle East and Africa

Currency CodeCurrency
EGPEgyptian pound
KZTKazakhstani tenge
NGNNigerian Naira

Latin America

Currency CodeCurrency
ARSArgentine peso
CLPChilean peso
CRCCosta Rican colon
PENPeruvian Nuevo sol
COPColombian peso
UYUUruguayan peso
SRDSurinmese dollar
VEFVenezuelan bolivar
GTQGuatemalan quetzal
BRLBrazilian 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 NDF Currencies List

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.

 

Research: Vincent Nyoike

Vincent is a writer with an interest in finance, business, technology and health niche. He holds a Bachelors degree in Applied Statistics with computing. Read more about Vincent and see our complete editorial team at FiFi.