Non-Deliverable Swap (NDS)

A synthetic instrument used to replicate the net cash flows of a currency coupon swap or cross-currency swap when one of the currencies is thinly traded, subject to exchange restrictions, or even non-convertible. Like a Non-Deliverable Forward (NDF), the settlement value at each payment date is based partly on an agreed posted or dealer rate. See also Non-Deliverable Forward (NDF), Currency Coupon Swap.

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