User Image Admin Istrator Shared publicly - 2020-10-01

What is FX Swap or Currency Swap ?

An FX swap, or currency swap, involves two simultaneous currency purchases, one on the spot rate and the other through a forward contract.

A variety of market participants such as financial institutions and their customers (multinational companies), institutional investors who want to hedge their foreign exchange positions, and speculators use foreign exchange swaps.

FX swaps are designed to hedge against currency risk.