Q » Explain currency swap.

Steven

06 Dec, 2025

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A » A currency swap is a financial agreement between two parties to exchange principal and interest payments in different currencies. Typically used by businesses to hedge against exchange rate fluctuations or obtain more favorable loan terms, it involves swapping equivalent amounts in two currencies, followed by regular interest payments in those currencies, and ultimately re-exchanging the principal amount at a predetermined future date.

Michael

06 Dec, 2025

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All Other Answer

A »A currency swap is a financial derivative where two parties exchange principal and interest payments in different currencies. It helps manage foreign exchange risk and can provide access to foreign capital. The swap involves exchanging cash flows based on a notional amount, with the exchange rate fixed at the start.

David

06 Dec, 2025

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