BANKING AFFAIRS

Detailed explanation-1: -A currency swap is the ideal instrument to manage the maturity of cash flows in foreign currencies. It is a combination of two foreign exchange transactions. Usually, you enter a spot and a forward transaction. Thus, the exchange into another currency and the re-exchange at a later date is stipulated in an FX swap.

Detailed explanation-2: -Currency swap transaction (FX swap) helps to manage cash flows in different currencies more efficiently and avoid the impacts of exchange rate changes.By concluding this transaction, you agree with the bank to exchange a set amount of one currency for another for a specified period of time.

Detailed explanation-3: -floating. Currency swaps involve exchanging cash flows generated from two different currencies to hedge against exchange rate fluctuations.

Detailed explanation-4: -A currency swap contract (also known as a cross-currency swap contract) is a derivative contract between two parties that involves the exchange of interest payments, as well as the exchange of principal amounts in certain cases, that are denominated in different currencies.

Detailed explanation-5: -A currency swap, or a cross-currency swap, is a contract between two parties to exchange interest payments and principal amounts in two different currencies at a pre-agreed rate of exchange.