Banks In Philippines Cap NDF Exposures, Says Nomura

Onshore banks in the Philippines are understood to have capped their exposure to non-deliverable forwards across the board.

Onshore banks in the Philippines are understood to have capped their exposure to non-deliverable forwards across the board. The move may be linked with the central bank’s distaste for onshore banks large arbitrage activity between forwards and NDFs.

Banks based in the Philippines are understood to have agreed informally to cap their non-deliverable forward (NDF) positions, according to Nomura FX strategists. The initiative became live on March 4…

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