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Foreign Exchange Swap
(redirected from Cross-Currency Swaps)

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Foreign exchange swap
An agreement to exchange stipulated amounts of one currency for another currency at one or more future dates.

Foreign Exchange Swap
An agreement between two parties to exchange two currencies at a certain exchange rate at a certain time in the future. For example, if a company knows that it will need British pounds in the future and another company knows that it will need U.S. dollars, they agree to swap the two at the agreed-upon exchange rate. This eliminates the risk that the exchange rate will change in a way that is disadvantageous to one party or the other. They are also called currency swaps. See also: Swap.


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The bank then arranged new cross-currency swaps and restructured its other swaps with Greece that reduced the country's deficit by 0.
We have recorded our Cross-Currency Swaps at an estimated credit-adjusted mark-to-market valuation.
The most dramatic rise came in cross-currency swaps, in which two parties agree to exchange streams of interest payments in different currencies for a certain period.
 
 
 
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