Foreign exchange swap

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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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Iceland's central bank and China also agreed to a $500 million foreign currency swap in 2010.
The specifics of calculating the required collateral posting amount for foreign currency swap counterparties is presented in Appendix B.
In New Zealand, every customer of HSBC Premier, the bank s flagship global personal banking scheme, enjoys services of a dedicated local relationship manager in addition to several other benefits such as zero-fees at countrywide ATM network, plus foreign currency swap at any HSBC branch across the world without any commission and money transfer services globally amid customer s own HSBC accounts for free within just half-minute.
During the last month of 2014, the FX swaps were down to zero as the central bank released all its foreign currency swaps which amounted to less than $1 billion in the previous month.
The solution to the financing of the current account deficit does not lie in anticipating capital flows, borrowing short-term money in the garb of foreign currency swaps with Turkey, China, etc, but in raising our exports, shifting the current policy bias in favour of import substitution to exports and improving productivity through better access to technology and public and private investment in high-quality education and technical and vocational skills.
One is the use of short-term foreign currency swaps in Reserve Bank domestic short-term liquidity management operations.
The European Commission is still waiting for clarifications from the Greek government on how it used foreign currency swaps with US investment bank Goldman Sachs to mask the true level of its debt when it joined the euro.
The category includes repurchase agreements, primary credit, foreign currency swaps, the Term Auction Facility (TAF), the Primary Dealer Credit Facility (PDCF), securities lent to dealers (including the Term Securities Lending Facility or TSLF), and credit extended to AIG.

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