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Currency swaps

• By entering into a currency swap institutions can hedge their currency risk exposure. In a fixedfixed currency swap, one financial institution sends fixed interest rate dollar-denominated payments in exchange for say fixing interest rate sterling-denominated payments.

 
 

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 Embedded terms in definition
 Currency risk
Currency swap
Currency
Exchange
Financial institution
Hedge
Interest rate
Interest
Risk
Swap
 
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<< Currency swap Current / noncurrent method >>

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