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Non-deliverable swap  (NDS) - Financial definition

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Concise definition of the term non-deliverable swap

A non-deliverable swap is a currency swap which involves at least one currency that is restricted or not convertible.

Comprehensive definition of the term non-deliverable swap

An NDS is so-called because there is no delivery of the two currencies involved, whereas in a classical currency swap there is physical exchange of the amounts in the involved currencies.

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