Singapore hit by currency fixing claims


Non-deliverable currency forwards, or NDFs, are not a tool that many individual investors may be familiar with.

But they have been getting a lot of attention recently, not least because they could be at the centre of the claims of a currency-rigging scandal in Singapore.

They let traders buy and sell emerging market currencies, such as the Indonesian rupiah, the Malaysian ringgit or the Vietnamese dong.

The NDFs are also used to limit or hedge risk in the currency markets.

So what exactly is the problem and how will it affect Singapore, which is the second-biggest foreign exchange market in Asia?

Sharanjit Leyl spoke to Jame DiBiasio, executive editor of FinanceAsia in Hong Kong.

BBC © 2014 The BBC is not responsible for the content of external sites. Read more.

This page is best viewed in an up-to-date web browser with style sheets (CSS) enabled. While you will be able to view the content of this page in your current browser, you will not be able to get the full visual experience. Please consider upgrading your browser software or enabling style sheets (CSS) if you are able to do so.