A currency swap should be distinguished from interest rate swap
, for in currency swap, both principal and interest of loan is exchanged
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Currency swap - Wikipedia, the free encyclopediaely the principal and/or interest payments) of a loan in one currency for equivalent aspects of an equal in net present value loan in another currency; see foreign exchange derivative. Currency swaps are motivated by comparative advantage. <span>A currency swap should be distinguished from interest rate swap, for in currency swap, both principal and interest of loan is exchanged from one party to another party for mutual benefits.
1 Structure2 Uses
2.1 Hedging example
3 Examples4 Abuses5 History6 References7 External links
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