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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Foreign exchange swaps made up the largest traded foreign exchange product class in Singapore and accounted for 48%4 of all trades, followed by spot (24%4) and FX forwards (20%4).
The Bank can also use foreign exchange swaps to inject or withdraw cash from the banking system, although these transactions are done outside the OMO.
The Bangko Sentral ng Pilipinas (BSP) had foreign exchange swaps of $3.
FX benchmark rates, such as the WM/R Rates, are used for pricing of cross-currency swaps, foreign exchange swaps, spot transactions, forwards, options, futures and other financial derivative instruments.
Forward rate agreement (FRA) volumes dropped by 10%, while there was a rise of 9% in the volume of foreign exchange swaps and an 8% rise in cross-currency swaps.
They hiked their interest rates, they took measures to tighten liquidity, they intervened in the market, they provide foreign exchange swaps, they provide hedging against foreign currency risks.
Most notably, Switzerland did so before 1998 through foreign exchange swaps, a technique explained below (AR 2009, p.
The value of the trades--which included interest rate swaps, credit default swaps, foreign exchange swaps, and commodity derivatives--totaled more than $6 billion.
The treatment of foreign exchange swaps and forwards remained unclear for more than two years after the passage of Dodd-Frank, until the Treasury issued an exemption for such products in November 2012 (U.
Late in the month, the Treasury Department ruled that foreign exchange swaps and forwards used by U.
This gap may be understood as measuring the extent to which big Swiss banks potentially had to rely on foreign exchange swaps (BIS Quarterly March 2009).
dollar or other currencies via the foreign exchange swaps market, it said.

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