Currency swap - An agreement to swap a series of specified payment obligations denominated in one currency for a series of specified payment obligations denominated in a different currency.
An arrangement in which two parties exchange a series of cashflows in one currency for a series of cashflows in another currency, at agreed intervals over an agreed period.Companies would do this where they have existing borrowings in a currency which they want to convert into a borrowing in another currency. If its borrowing is at a fixed rate, and it is exchanging for another fixed rate borrowing, the swap is a "fixed rate currency swap".Unlike an interest rate swap, a currency swap usually does involve an exchange of the principal borrowed amount as well as the interest payments.
Currency swap : an agreement to swap a series of specified payment obligations denominated in one currency for a series of specified payment obligations denominated in a different currency.
an arrangement in which two parties exchange a series of cashflows in one currency for a series of cashflows in another currency, at agreed intervals over an agreed period.companies would do this where they have existing borrowings in a currency which they want to convert into a borrowing in another currency. if its borrowing is at a fixed rate, and it is exchanging for another fixed rate borrowing, the swap is a "fixed rate currency swap".unlike an interest rate swap, a currency swap usually does involve an exchange of the principal borrowed amount as well as the interest payments.
Currency swap