cross currency swaps
Cross currency swaps are financial agreements in which two parties exchange interest payments and principal amounts denominated in different currencies for a specified period. These swaps help participants manage foreign exchange risk by allowing them to convert payments and debts from one currency to another, minimizing exposure to exchange rate fluctuations.
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Related Concepts (1)
Similar Concepts
- basis swaps
- credit default swaps
- cross-border capital flows
- cross-border transactions
- currency arbitrage
- currency exchange rates
- currency hedging
- floating exchange rate
- floating-for-fixed swaps
- foreign currency borrowing
- foreign exchange
- foreign exchange market
- foreign exchange risk management
- foreign exchange swaps
- interest rate swaps