Currency Swaps

Currency swaps involve the exchange of principal and interest payments in one currency for equivalent amounts in another currency. These agreements typically occur between two parties looking to hedge against fluctuations in exchange rates or access cheaper borrowing costs in a different currency. By swapping currencies, both parties can benefit from favorable interest rates and manage their foreign exchange risk effectively.

External Links

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Related Categories

Cross Currency Swaps
CrossCurrency Swaps
Currency Swaps