Asian Non-Deliverable Forward (NDF)

  • asian non deliverable forward ndfasian non deliverable forward ndf

    Leveraged trading in major foreign currencies

Features & Benefits

NDF is an efficient method of managing FX exposures against non-convertible currencies since there is no actual exchange of principal funds.

  • Non-Deliverable Forwards (NDFs) are conceptually similar to forward foreign exchange contracts; the difference is that they do not require physical delivery of the non-convertible currency.
  • 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.
  • NDFs are cash-settled currency forwards which provide an offshore mechanism to hedge currencies which were previously considered "unhedgeable"; either due to emerging markets suffering from illiquidity or regulatory/settlement constraints.
  • NDF is an efficient method of managing FX exposures for non-convertible currencies since there is no actual exchange of principal funds. 
  • The contracts are devoid of country or local market risk as NDFs are not conditional upon the FX regime being maintained (apart from the fixing at maturity).
  • When trading in NDFs, there is no withholding tax and no custody requirements, unlike trading in securities.
  • There is no bid/offer spread on maturity as the contracts are normally settled against a fixing rate.

Enjoy hedging benefits against FX risks at competitive rates

We offer this facility for the following Asian currencies:

  • Chinese Renminbi (CNY)
  • Indian Rupee (INR)
  • Indonesian Rupiah (IDR)
  • New Taiwanese Dollar (TWD)
  • Philippine Peso (PHP)
  • South Korean Won (KRW)

Apply Now

  • To apply, all corporations have to set up a FX Line with the Bank. The FX line states the maximum amount and tenure that you may contract at any one time.
  • If your business currently has credit facilities (e.g. Letter of Credit, Trust Receipts or Overdraft line) with the Bank, you can arrange with your banker to restructure the credit line to accommodate the additional FX facility by earmarking a portion of the existing facilities.

More Information

Visit us at:

United Overseas Bank Limited

Financial Institution Sales

80 Raffles Place

5th Storey UOB Plaza 1

Singapore 048624

Tel: 6233 6032