Currency swaps, whereby two parties exchange currencies at a specified point in time for a specified price, are oFten used by MNCs to hedge against interest rate risk.

Name: Currency swaps, whereby two parties exchange currencies at a specified point in time for a specified price, are oFten used by MNCs to hedge against interest rate risk.
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Currency swaps are primarily used to hedge against currency risk, not interest rate risk, although they can also be structured to manage interest rate exposure.

Currency Swaps, Whereby Two Parties Exchange Currencies at a Specified