Philippine central bank NDF curbs won’t stop peso appreciation


Measures undertaken by the Central Bank of the Philippines (CBP) to limit the appreciation of the peso by imposing a cap on non-deliverable forwards (NDFs) will have a limited impact, say market observers. On December 26, 2012 the central bank imposed new limits on NDF positions. Local bank exposures to NDFs will be limited to 20% of capital, with exposures of foreign banks operating in the Philippines capped at 100% of capital. In addition, pre-termination of NDFs was prohibited meaning bank