Simple Foreign Exchange Swaps


A foreign exchange swap refers to buying a currency while selling another at the near end, and selling while buying the same currencies at the far end. That is to say, a swap consists of a spot (forward) transaction and a reverse forward transaction. The currencies involved include various types of currencies that can be converted freely. 

Product Features and Advantages 

The combination of spot and forward foreign exchange transactions uses different exchange rates on the two ends, which allows customers to match the cash flows of two currencies without assuming the risk of exchange rate volatility. It also meets the operational or financial needs of enterprises. 

Target Customers 

Domestic institutional customers with foreign exchange revenue and expenditure.