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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Although cash flow modelling indicates higher ratings for the class A-5 and A-6 notes, the affirmation at 'AAsf' is due to the counterparty risk introduced by the cross-currency swap, as the swap documents do not contain a provision that would mandate a counterparty replacement should the swap counterparty ratings fall below Fitch's required rating level.
In addition, the government should evaluate the possibility of becoming a party in funded cross-currency swap agreements with multilateral development institutions, or highly-rated private financial enterprises, to finance infrastructure,' it added.
It will also be the first synthetic local currency facility hedged through a cross-currency swap with the TCX fund.
For the EBRD this will be one of the first UAH-denominated loans to a commercial bank in Ukraine as well as the first synthetic local currency facility hedged through a cross-currency swap with the TCX fund.
The issuer signed a cross-currency swap agreement to EUR, lowering the annual interest cost to 1.
We are delighted to continue our collaboration with IIFM by jointly launching the Islamic cross-currency swap standard product template.
25 per cent five-year dollar bond at 150 bps over midswaps last November; taking into account the cross-currency swap rate and the fact that the tenor of its latest bond is two years longer it paid a premium of roughly 35 bps to sell this week's bond said a source close to the deal.
Cross-currency swaps: A cross-currency swap is a foreign exchange swap that also involves the exchange of streams of interest payments in different currencies for an agreed period of time.
After considering a number of alternatives, the CFO decides to utilize a cross-currency swap to hedge its exposure.
Further, Taiwan is currently in talks with Beijing on a cross-currency swap agreement.
The company plans to exchange the facility's currency to US dollars under a cross-currency swap so that it matches its functional currency, which will also enable Nord Gold to lower the pricing of the loan.
Moreover, she said the issue will help attract international investors to the Thai bond market as well as enhance liquidity in the cross-currency swap market.