Currency swaps can result in savings for a party due to the assumption of credit risk.

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Currency swaps involve exchanging one currency for another at an agreed exchange rate for a specific period of time. It can result in savings for a party due to the assumption of credit risk by the other party involved in the swap. This means that the party receiving the exchanged currency is taking on the risk of default by the other party, which can result in a lower cost of borrowing for them.

Currency Swaps Can Result in Savings for a Party Due