Singapore NDF probe hits market liquidity
The non-deliverable forward forex market last year fell under suspicion of the same rate-rigging that affected Libor and Sibor, and the fallout threatens to stifle liquidity and limit Asean forex hedging
As the global reach of the Libor-rigging scandal became clear, the Monetary Authority of Singapore (MAS) in July last year ordered the members of the Association of Banks in Singapore (ABS) to review how they set the Singapore interbank offered rate and the swap offer rate.
Two months later, MAS then widened the scope of the internal reviews to include the setting of the rates in the non-deliverable forward (NDF) forex contracts traded out of the city-state, ordering that the banks immediately
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