Reduce Currency Risk with FX Swap

Effectively Manage Currency Fluctuations with FX Swap!

Financial Flexibility

FX Swap transactions help you safeguard against liquidity shortages that may arise due to exchange rate fluctuations. This way, you can maintain your financial flexibility in the face of unpredictable market conditions.

Cost Advantage

Since FX Swap transactions are usually calculated based on interest rates and exchange rates, they offer a cost-effective financing tool in the foreign exchange market.

Exchange Rate Risk Management

With FX Swap transactions, you can exchange two currency transactions with different value dates or maturities at a specified exchange rate, providing effective risk management against exchange rate fluctuations.

What is a Currency Swap (FX Swap)?

Currency Swap (FX Swap) is a financial transaction in which a specific amount of currency is exchanged between two parties in different currencies for a predetermined period. This transaction is commonly used to hedge against fluctuations in exchange rates and to meet short-term financial needs.

Frequently Asked Questions

An FX swap is usually executed between two different currencies where the interest rates are different. Therefore, interest cost or yield is included in the transaction. FX swaps are used by companies, financial institutions and investors who want to hedge against uncertainty in exchange rates or differences in interest rates.

The main purpose of FX swaps is to meet needs such as increasing liquidity in financial markets, hedging against fluctuations in exchange rates or benefiting from interest rates.