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Currency swap - Wikipedia, the free encyclopediarrency swap, both principal and interest of loan is exchanged from one party to another party for mutual benefits.[2]
Contents
1 Structure2 Uses
2.1 Hedging example
3 Examples4 Abuses5 History6 References7 External links
Structure[edit]
<span>Currency swaps are over-the-counter derivatives, and are closely related to interest rate swaps. However, unlike interest rate swaps, currency swaps can involve the exchange of the principal.[1] There are three different ways in which currency swaps can exchange loans:
The simplest Summary
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Details