Foreign exchange swap

Not to be confused with Currency swap.
Foreign exchange
Exchange rates
Markets
Assets
Historical agreements
See also

In finance, a foreign exchange swap, forex swap, or FX swap is a simultaneous purchase and sale of identical amounts of one currency for another with two different value dates (normally spot to forward)[1] and may use foreign exchange derivatives. An FX swap allows sums of a certain currency to be used to fund charges designated in another currency without acquiring foreign exchange risk. It permits companies that have funds in different currencies to manage them efficiently.[2]

  1. ^ Reuters Glossary, "FX Swap" Archived 2009-01-11 at the Wayback Machine
  2. ^ ""Foreign Exchange Swap Transaction"" (PDF). Archived from the original (PDF) on 2012-09-16. Retrieved 2013-06-25.