In a foreign currency swap,a customer who needs to borrow in foreign currency,receives the domestic currency today and swaps it back for the foreign currency just in time to repay the loan in the foreign currency.

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In a foreign currency swap, the customer receives domestic currency today and swaps it back for the foreign currency at a later date to repay the loan in the foreign currency. This allows the customer to borrow in a foreign currency without the risk of fluctuating exchange rates.

In a Foreign Currency Swap,a Customer Who Needs to Borrow