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    Will lifer exodus kill Taiwan’s NDF market?

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    Will lifer exodus kill Taiwan’s NDF market? – FX Markets



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    FX Markets

    Traders split over whether insurers’ retreat from FX hedging is help or hindrance


    Taipei skyscraper

    The Taiwan dollar non-deliverable forward (NDF) market is the second largest in the world. But dig beneath the surface and the market has a fragile equilibrium.

    Traditionally, the mammoth local life insurers need to buy Taiwan dollars (TWD) in large clips to hedge their mainly US dollar bond holdings, which generate a foreign exchange exposure of TWD15.2 trillion ($482.6 billion), according to the Taiwanese regulator. This is balanced by demand from foreign investors to sell TWD to hedge their

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