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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Predetermined short-term outflows (foreign exchange swaps, central bank liabilities) not included in the above total amounted to a further $7bn.
Monetary operations of the BSP refer to the buying or selling of government securities, lending or borrowing against underlying assets as collateral, acceptance of fixed-term deposits, foreign exchange swaps, and the use of other monetary instruments of the central bank aimed at influencing the underlying demand and supply conditions.
BANKING AND CREDIT NEWS-September 19, 2018--Turkey relaxes limits imposed on banks' foreign exchange swaps
M2 EQUITYBITES-September 19, 2018--Turkey relaxes limits imposed on banks' foreign exchange swaps
Global Banking News-September 19, 2018--Turkey relaxes limits imposed on banks' foreign exchange swaps
Aside from term deposits, the BSP conducts other OMO such as foreign exchange swaps, reverse repurchase transactions, and outright purchases and sale of securities.
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.
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.
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.

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