Investopedia

Foreign Currency Swap

Dictionary Says

Definition of 'Foreign Currency Swap'

An agreement to make a currency exchange between two foreign parties. The agreement consists of swapping principal and interest payments on a loan made in one currency for principal and interest payments of a loan of equal value in another currency. The Federal Reserve System offered this type of swap to several developing countries in 2008.
Investopedia Says

Investopedia explains 'Foreign Currency Swap'

The World Bank first introduced currency swaps in 1981 in an effort to obtain German marks and Swiss francs. This type of swap can be done on loans with maturities as long as 10 years. They differ from interest rate swaps because they also involve principal.

Articles Of Interest

  1. The New World Of Emerging Market Currencies

    Take advantage of foreign currency markets without stepping out of your house.
  2. Introduction To The Continuing Claims Report

    This weekly economic release contains important information concerning unemployment levels and insurance.
  3. Inspecting A Country's Debt

    Tensions over just how to handle debt are pitting the rich world against the developing world like never before.
  4. Exploring Non-Dollar Currencies For Forex Trading

    Learn how investments in foreign currencies can diversify your portfolio.
  5. Emerging Markets' Environmental Commitment

    Most people think of the industrial and developed world as leaders when it comes to green technologies and environmental stewardship. After moving past their high-growth stages, many developed ...
  6. A Look Into Foreign Direct Investment Trends

    Foreign direct investments play an increasingly important role in countries as an indicator for a healthy economy in terms of economic growth and long-term capital movement.
  7. Breaking Down The Fed Model

    Learn what pundits mean when they say that stocks are undervalued according to the Fed model.
  8. Why China's Currency Tangos With The USD

    Congress often debates pressuring China to appreciate its currency, but the yuan/dollar peg has benefits for both countries.
  9. 5 Famous Discontinued And Uncommon U.S. Currency Denominations

    While we can choose from a rich array of singles, fins, sawbucks, Jacksons, $50s and Benjamins, there are several other denominations that the U.S. Treasury has discontinued. Here are the most ...
  10. Emerging Market ETFs For Your Retirement Accounts

    Emerging market ETFs are typically seen as riskier investments, but some of them may be able to strengthen your retirement accounts.
comments powered by Disqus
Marketplace
Hot Definitions
  1. Disaster Loss

    A special type of tax-deductible loss, similar to a casualty loss, where a loss has been incurred by taxpayers who reside in an area that has been designated as a federal disaster area by the President.
  2. Fool In The Shower

    The notion that changes or policies designed to alter the course of the economy should be done slowly, rather than all at once.
  3. Pattern Day Trader

    An SEC designation for traders who trade the same security four or more times per day (buys and sells) over a five-day period, and for whom same-day trades make up at least 6% of their activity for that period.
  4. Cost-Push Inflation

    A phenomenon in which the general price levels rise (inflation) due to increases in the cost of wages and raw materials.
  5. Happiness Economics

    The formal academic study of the relationship between individual satisfaction and economic issues, such as employment and wealth.
  6. Affluenza

    A social condition arising from the desire to be more wealthy, successful or to "keep up with the Joneses." Affluenza is symptomatic of a culture that holds up financial success as one of the highest achievements.
Trading Center
Array ( )
taggroups(for debug only):
Array ( [0] => Markets [1] => Forex [2] => SEG (Active Traders) [3] => SEG (Active Traders:Instrument-Options&Futures) [7] => Investing [8] => SEG (Investors) ) time:10ms