What is a Forex Swap?
Bi-currency exchange transactions through cash purchases with future resale or cash sales with future repurchases at the exchange rate agreed on the transaction date.
Benefits of Forex Swap
Hedging the risk of exchange rate fluctuations.
Certainty cash flow of two different currencies in the present and in the future.
The need for payment/disbursement of debt in foreign currency.
The need for payment/receipt of imports/exports in foreign currencies.
