An arrangement in which two parties exchange specific amounts of different currencies initially, and a series of interest payments on the initial cash flows are exchanged. Often, one party will pay a fixed interest rate, while another will pay a floating exchange rate (though there may also be fixed-fixed and floating-floating arrangements). At the maturity of the swap, the principal amounts are exchanged back. Unlike an interest rate swap, the principal and interest are both exchanged in full in a currency swap.
Related information about currency swap:
- Currency swap - Wikipedia, the free encyclopedia
A currency swap is a foreign-exchange agreement between two parties to exchange aspects (namely the principal and/or interest payments) of a loan in one ...
- Currency Swap Definition | Investopedia
A swap that involves the exchange of principal and interest in one currency for the same in another currency. It is considered to be a foreign exchange ...
- Currency Swap Basics
May 24, 2011 ... Find out what makes currency swaps unique and slightly more complicated than other types of swaps.
- Currency swap - YouTube
May 26, 2008 ... Brief illustration of a fixed-for-fixed currency swap (e.g., dollars for euros). Please note: in a plain vanilla interest rate swap, we referred to the ...
- Currency Swap - Financial Dictionary - The Free Dictionary
An agreement to swap a series of specified payment obligations denominated in one currency for a series of specified payment obligations denominated in a ...
- What is currency swap? definition and meaning
Definition of currency swap: An arrangement in which two parties exchange specific amounts of different currencies initially, and a series of interest payments on ...
- Currency swap: Definition from Answers.com
Currency Swap Agreement to exchange one currency for another at an agreed upon exchange rate. In a currency swap, the holder of an unwanted currency ...
- Currency Swap
A currency swap is a form of swap. It is most easily understood by comparison with an interest rate swap. An interest rate swap is a contract to exchange cash ...