A currency swap is a foreign-exchange agreement between two institutions to exchange aspects (namely the principal and/or interest payments) of a loan in one currency for equivalent aspects of an equal in net present value loan in another currency.
Currency swaps are over-the-counter derivatives, and are closely related to interest rate swaps. However, unlike interest rate swaps, currency swaps can involve the exchange of the principal.
the main uses of Currency Swap
Currency swaps have two key uses:
central banks are currently participating in the Currency Swap Line arrangements –
There are currently 6 central banks participating in this Currency Swap Line arrangements. The 6 central banks are:-
India During the fall of rupee against world currencies in 2013, initiated many agreements with many world countries over currency swap, which helped us to stable the rupee.
Hola! If you haven't heard this quote yet, take a moment to read it here.…
"Think good an good follows. Think evil and evil follows. Think creative and creativity will…
Better late than never! Apologies for the delay in responding, but I'm here now to…
By providing accurate information, context, promoting critical thinking, raising awareness, connecting global and local issues,…
Current affairs coverage often showcases stories of individuals and communities making a positive impact. Q1.…
Current affairs coverage helps individuals understand the interconnectedness of global and local events. It shows…