BANKING,FINANCEanagreementbetween twoorganizationstochangetheamountofmoneylentor theinterestpaymentsof aloanmade in onecurrencyfor the samepartof aloanin anothercurrency:When theyborroweddollarsfrom thebank, theyenteredinto acurrencyswaptoprotectthevalueoftheirloanforprojectsthat had to bepaidinpesos.(Definition ofcurrency swapfrom theCambridge Business English Dictionary? Cambridge University Press)
Examplesofcurrency swap
currency swapThe money market segments that are highly condensed are the forward rate agreement, other interest rate agreement and the crosscurrencyswapsegments.FromWikipediaThis example is from Wikipedia and may be reused under a CC BY-SA license.For consistency, forwardcurrencyswapcontracts are not included in this list until they mature; figures that include them may be higher or lower than those listed here.FromWikipediaThis example is from Wikipedia and may be reused under a CC BY-SA license.However, in a mark-to-market crosscurrencyswap, the notional amount of one of the legs is subject to adjustment while the notional amount of the other leg remains constant.FromWikipediaThis example is from Wikipedia and may be reused under a CC BY-SA license.However, unlike interest rate swaps, currency swaps can involve the exchange of the principal.FromWikipediaThis example is from Wikipedia and may be reused under a CC BY-SA license.Initiated as a way of avoiding currency regulations, the practice had, by the mid-1990s, largely been replaced by currency swaps.FromWikipediaThis example is from Wikipedia and may be reused under a CC BY-SA license.Currency swaps are motivated by comparative advantage.FromWikipediaThis example is from Wikipedia and may be reused under a CC BY-SA license.Instead, it advocated a system of bilateral short-term currency swaps to support exchange rates against market pressure.From theCambridge English CorpusThis exchange of returns could be in a common currency, dollars, as described or adjusted to different currencies along similar lines to currency swaps.From theCambridge English CorpusMore specifically, international capital flows stemming from transnational business activities were encouraged to transact through cross currency swaps, the idea being to minimize forex market volatility risks.From theCambridge English CorpusThese examples are from corpora and from sources on the web. Any opinions in the examples do not represent the opinion of the Cambridge Dictionary editors or of Cambridge University Press or its licensors.#https://dictionary.cambridge.org//dictionary/english/currency-swap##
