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.
Copyright © 2012, Campbell R. Harvey. All Rights Reserved.

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.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved
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Summary: Currency swaps through the Renminbi Clearing Centre in the UAE reached $7.01 billion (Dh25.7 billion; RMB44.57 billion) dur...
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Two phone calls to China's central bank seeking comment on the terms of its currency swaps weren't returned.
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Keywords: Currency swaps; Bid-ask rates; Interest rate swaps
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The Association of Southeast Asian Nations (ASEAN) and its partners Japan, China and South Korea have made good progress on the currency swaps.
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Finance ministers from 13 East and Southeast Asian countries will declare after their meeting Wednesday that good progress has been made toward creating a network of currency swaps among them, according to a draft of their joint statement.
E. Asian nations boast of progress in currency swap deals
Finance ministers from the Association of Southeast Asian Nations agreed with Japan, China and South Korea in early May in Chiang Mai, Thailand to establish bilateral currency swaps to strengthen their financial systems and prevent future financial crises.
Regional teamwork key to stemming financial crises: Sakakibara

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