The purpose of a currency swap is to hedge exposure to exchange rate risk or reduce the cost of borrowing a foreign currency.

Describe the type of currency rate swap.

Type of Currency Loan Level Swap

The World Bank executed a US$1 billion currency swap transaction for Morocco to manage its exposure to the US dollar from a recent bond issuance.

The interest rates in a currency swap are the swap rates calculated from the respective countries yield curves.

A typical currency swap constitutes a foreign exchange agreement where two parties will exchange or ‘swap’ a series of payments (interest and principal) in one currency for a series of payments in another currency.

Swaps can be distinguished according to their subject matter, the two main types or swap being the currency swap (or the exchange swap) and the interest rate swap.

Exchange Rate for Loan Level Swap

26th December, 2012- The World Bank executed a US$1 billion currency swap transaction for Morocco to manage its exposure to the US dollar from a recent bond issuance.

Swap Request" means a Cardholder’s request for a Currency Swap Transaction;

A cross-currency swap is an interest rate swap in which the cash flows are in different currencies.

Crédit Agricole CIB offers cross currency swaps, Islamic FX swap, FX Wa'ad* (FX options), and Islamic FX Outright* - based on unilateral Wa’ads.

A cross-currency basis swap agreement is a contract in which one party borrows one currency from another party and simultaneously lends the same value, at current spot rates, of a second currency to that party.

Currency swaps: is an agreement in which two parties exchange the principal amount of a loan and the interest in one currency for the principal and interest in another currency.

Five-year mark to market (MtM) cross-currency EUR/USD SWAP.