Currency swaps are transacted between international businesses and their banks, between banks, and between governments when it is desirable to move out of one currency into another for a limited period without incurring foreign exchange risk.

Question

Quizplus · Accepted Answer

Currency swaps allow parties to exchange cash flows in different currencies, helping them manage foreign exchange risk by locking in exchange rates for a specified period.

Currency Swaps Are Transacted Between International Businesses and Their Banks