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Foreign Exchange Swap Transaction

Foreign Exchange Swap - a pair of currency transactions, one currency is exchanged for another for an agreed time period. One purchase, one sale, for 2 different value dates, one of which is spot or forward, the other is forward. The cash flow for swap transaction occurs at the beginning of the trade and at the maturity of far leg.

FEATURES

  • Foreign exchange swap transaction allows clients to hedge against exchange rate and interest rate risk while the same time minimizing the cost of foreign currency exchange. It allows customers to effectively control market risk as well as matching the future cash flows of foreign currency assets or liabilities to meet business needs.
  • Suitable for corporate customers have currency mismatch or who need to effectively hedge their exchange and interest risk.

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