Foreign exchange swap

In finance, a foreign exchange swap, forex swap, or FX swap is a simultaneous purchase and sale of identical amounts of one currency for another with two different value dates (normally spot to forward)^[1] and may use foreign exchange derivatives. An FX swap allows sums of a certain currency to be used to fund charges designated in another currency without acquiring foreign exchange risk. It permits companies that have funds in different currencies to manage them efficiently.^[2]

^ Reuters Glossary, "FX Swap" Archived 2009-01-11 at the Wayback Machine
^ ""Foreign Exchange Swap Transaction"" (PDF). Archived from the original (PDF) on 2012-09-16. Retrieved 2013-06-25.

[1] Reuters Glossary, "FX Swap" Archived 2009-01-11 at the Wayback Machine

[2] ""Foreign Exchange Swap Transaction"" (PDF). Archived from the original (PDF) on 2012-09-16. Retrieved 2013-06-25.

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