Non-Deliverable Forwards: Impact of Currency Internationalisation and Derivatives Reform
13 Pages Posted: 22 Dec 2016
Date Written: December 11, 2016
Global turnover in non-deliverable forwards (NDFs) continues to rise in aggregate. But the paths of NDF markets have diverged across currencies: renminbi internationalisation has led to rapid displacement of NDFs by deliverable forwards, while the NDF market has retained or even gained in importance in other emerging market economy currencies. Policy reforms to reduce systemic risk in derivatives markets are changing the microstructure of the NDF market.
JEL Classification: F31, G15, G18
Suggested Citation: Suggested Citation