Brief Description

As with FX DF, FX NDF is a contract between you as the client and CTBC Bank, in which you either have the obligation to buy the underlying currency from the Bank or to sell it to the Bank at a future date at a rate agreed at present (forward rate).

Unlike the FX DF, the FX NDF only settles the difference between the onshore official fixing rate and the FX NDF rate at contract forward date. You either pay to or receive from the Bank the difference depending on the onshore fixing rate at forward date. You could then buy or sell the same currency in the onshore spot market to fulfill the physical currency requirement. In effect, you are buying or selling the onshore currency at the offshore FX NDF contract rate.

Features

The FX NDF enables you to hedge against foreign exchange risk, as you can book international payments in advance, while ensuring that you meet a budget rate for a future transaction. Its settlement is on the agreed date (forward date).

Requirements

• Credit Line*
• Client Suitability Assessment Form/ Risk Profile Questionnaire
• Master Agreement
• Suitability Letter
• Risk Disclosure Statement
• Term Sheet
• Other supporting documents as required by the Manual of Regulations for Banks (MORB)*

*Please refer to your Relationship Manager/Account Officer for the rates and other pertinent documents required.

List of Acceptable IDs