If an organisation enters a foreign currency swap it will effectively insulate itself against the effects of changes in the spot rates.

Name: If an organisation enters a foreign currency swap it will effectively insulate itself against the effects of changes in the spot rates.
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Question

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By entering a foreign currency swap, an organization can lock in a fixed exchange rate for a future date, thereby protecting itself from the adverse effects of fluctuations in the spot rates.

If an Organisation Enters a Foreign Currency Swap It Will