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Currency swap

An arrangement in which two parties Exchange specific amounts of different currencies initially, and a Series of Interest payments on the initial Cash flows are exchanged. Often, one Party will pay a fixed Interest rate, while another will pay a floating Exchange rate (though there may also be fixed-fixed and floating-floating arrangements). At the Maturity of the Swap, the Principal amounts are exchanged back. Unlike an Interest rate swap, the Principal and Interest are both exchanged in Full in a Currency swap.

Related Terms: 23 Cash, Currency, Currency swap, Exchange, Exchange rate, ECI, Float, Full, Floating exchange rate, Interest rate swap, Interest, Inc., Interest rate, Low, Lows, Maturity, Party, Principal, Principal amount, Range, Rent, Swap, Series
Other Related Pages: Category: Currency Starting With: C
Semi Related Terms: 628 CLICK HERE TO VIEW
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