Renminbi liberalisation reduces demand for NDFs

The NDF of the line?

The NDF of the line?

As part of the maturation and continued liberalisation of China's currency, the offshore deliverable renminbi market has eclipsed the size of the non-deliverable forward (NDF) market, with a larger number of corporates and other market participants now using deliverable forwards to hedge their RMB exposure instead of NDFs. This is due to an increase in liquidity in the deliverable RMB market as a result of more trade settlement flows in and out of China.

The CNH market or offshore pool of delive

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