NDF markets: Don’t kill the messenger, read the message

The government and RBI have taken several measures to check the depreciation of the rupee. Both have made several references to the non-deliverable forward (NDF) markets as a source of speculative activity against the rupee. NDFs are derivative contracts that do not require the delivery of the underlying asset. NDF markets exist for most emerging market currencies that are not freely convertible on the capital account. 

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