foreign exchange swaps
Foreign exchange swaps are financial transactions where two parties exchange a set amount of one currency for another and agree to reverse the exchange at a predetermined future date and exchange rate. It allows individuals and businesses to manage their currency exposure and secure future exchange rates.
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Related Concepts (1)
Similar Concepts
- basis swaps
- credit default swaps
- cross currency swaps
- currency hedging
- fixed exchange rate
- floating exchange rate
- floating exchange rate regime
- floating-for-fixed swaps
- foreign currency borrowing
- foreign exchange
- foreign exchange market
- foreign exchange reserves
- foreign exchange risk management
- forward contracts
- interest rate swaps