Introduction

Currency swap refers to a practice whereby clients, based on the movements of exchange rate and interest rate in the international capital market, convert their floating interest rate obligations of one currency into floating/fixed interest rate obligations of another currency or convert fixed interest rate obligations of one currency into fixed/floating interest rate obligations of another currency.

Product Advantages

It allows clients to match the cash flows of two foreign-currency assets by mitigating exchange rate and interest rate risks, so as to meet their business needs.

Target clients

Institutional clients with foreign-currency obligations (Euro, Australian Dollar, Japanese Yen, etc.).

Trading Timeframe

1-7 years.