Foreign Currency Swap

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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.
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'Foreign Currency Swap'

  • Hedging With Currency Swaps

    http://www.investopedia.com/articles/forex/11/hedging-with-currency-swaps.asp
    ... Companies that have exposure to foreign markets can often hedge their risk with
    four specific types of currency swap forward contracts (Note that in the ...

  • An Introduction To Swaps

    http://www.investopedia.com/articles/optioninvestor/07/swaps.asp
    ... Plain Vanilla Foreign Currency Swap The plain vanilla currency swap involves exchanging
    principal and fixed interest payments on a loan in one currency for ...

  • The Forex Market: Who Trades Currency And Why

    http://www.investopedia.com/articles/forex/11/who-trades-forex-and-why.asp
    ... into a currency swap agreement to obtain dollars in advance of purchasing components
    from the American company in order to reduce foreign currency exposure risk ...

  • Currency Swap Basics

    http://www.investopedia.com/articles/forex/11/introduction-currency-swaps.asp
    ... however, exposes both companies to foreign exchange risk ... Against Exchange Rate Risk
    With Currency ETFs.) Additionally ... In a total return swap, for example, the ...

  • An In-Depth Look At The Swap Market

    http://www.investopedia.com/articles/trading/11/introduction-swap-market.asp
    ... Such swap agreements allow the counterparties to gain ... rate exposure as well as foreign
    exchange exposure ... all payments are made in the counterparty's currency. ...

  • CFA Level 1 Study Guide - Derivatives - Currency Swaps ...

    http://www.investopedia.com/exam-guide/cfa-level-1/derivatives/currency-swaps.asp
    ... 5.14 Foreign Exchange Parity Relations; 5.15 Currency Appreciation and ... and the Lower
    Bounds; 15.36 Swap Markets and ... 15.37 Currency Swaps; 15.38 Interest Rate and ...

  • CFA Level 1 Study Guide - Derivatives - Currency Forward Contracts ...

    http://www.investopedia.com/exam-guide/cfa-level-1/derivatives/currency-forward-contracts.asp
    ... 5.14 Foreign Exchange Parity Relations; 5.15 Currency Appreciation and ... and the Lower
    Bounds; 15.36 Swap Markets and ... 15.37 Currency Swaps; 15.38 Interest Rate and ...

  • How do companies benefit from interest rate and currency swaps?

    http://www.investopedia.com/ask/answers/06/benefitsofswaps.asp
    ... A currency swap involves the exchange of both the principal and ... I n general, both
    interest rate and currency swaps have ... receive better rates than a foreign firm ...

  • How Companies Use Derivatives To Hedge Risk

    http://www.investopedia.com/articles/stocks/04/122204.asp
    ... USD/EUR exchange rates, ACME purchases 800 foreign-exchange futures ... have an inverse
    relationship with the currency exchange impact ... is using an interest rate swap ...

  • Forex Currencies: Introduction | Investopedia

    http://www.investopedia.com/university/forex-currencies/
    ... tutorial provides an overview of basic foreign currency (forex/FX ... different trades:
    the sale of one currency and the ... While it is possible to swap virtually any ...

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