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Hi, questions on Non-Deliverable Forwards (NDFs) and on-shore/off-shore yields.Please correct me if my underlying assumptions are incorrect in the first place. 1) NDFs are used when the other CCY is protected and not freely available e.g. CNY/TRY....2) As I understand, there would be equivalent swap rates and LIBOR fixings on the local markets e.g. quoted in Shanghai. These would have (for example) a 1yr swap rate for cash flows based on RMB operating within China.3) Now, for an investor outside, e.g. based in New York, he/she would have to trade NDFs since the CNY is a controlled CCY.4) I would derive an implied 1yr, 2yr yield rates based on this NDF forwards.My questions area) the implied yield rates from NDF will be different from the yield rates quoted in Shanghai (i.e. offshore vs onshore).b) Would the NDF implied yield rates always be lower than the on-shore yield rates? Why?Hope my underlying knowledge and questions makes sense!Cheers

1. Not necessarily2. May not be a liquid market or any market at all.3. Ok.. could be4. b) Yes, often due to taxation, more liquidity etc. But note that you are comparing two different kinds of rates(assuming that a swap market exists).