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.


Follow this link for all the terms related to swap.

 Embedded terms in definition
 Currency risk
Currency swap
Financial institution
Interest rate
 Related Terms

<< Currency swap Current / noncurrent method >>

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