Foreign exchange swap
Simultaneous purchase and sale of identical amounts of one currency for another / From Wikipedia, the free encyclopedia
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Not to be confused with Currency 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]