31. In addition, banks would set up non-deliverable forward contracts . 32. The same potential loss scenario may be the case with the proposed non-deliverable forward contracts . 33. Aluminum alloy trades at around $ 1555 per metric ton for a three-month forward contract . 34. All the gold fulfilled maturing forward contracts where the contract price exceeded the spot price. 35. Hedging is done with forward contracts or currency options. 36. A non-deliverable forward contract is an instrument that borrowers use to cover their dollar liabilities. 37. Forward contracts involve the exchange of currencies at a set rate on a future date.38. Now at Bt47-Bt48 per US dollar, the cost of settling the forward contracts is prohibitive. 39. It does not mend its mistakes by settling forward contracts when the baht is relatively stronger. 40. Until then, foreigners were required to hedge their bond positions with forward contracts to buy dollars.
