Non-deliverable forward contracts (NDFs) are frequently used for currencies in emerging markets.

Question

Quizplus · Accepted Answer

Non-deliverable forward contracts (NDFs) are commonly used for currencies in emerging markets where regulations may limit foreign exchange transactions or where currency volatility can make it difficult to accurately predict exchange rates. NDFs allow parties to hedge against potential currency movements without physically exchanging currencies.

Non-Deliverable Forward Contracts (NDFs) Are Frequently Used for Currencies in Emerging