Home » Tags » Cross currency swaps
Cross currency swaps
Understanding Cross-Currency Swaps' Impact on Forex
November 16, 2023
How do cross-currency swaps influence the foreign exchange market?
Cross-currency swaps affect the forex market by enabling parties to exchange cash flows in different currencies while mitigating exchange rate risks. These swaps involve borrowing one currency and simultaneously lending another, impacting both currency demand and liquidity in the forex market. Cross-currency swaps are instrumental in managing risks and adjusting currency exposures, influencing market dynamics.
Tags : Cross-Currency Swaps , Forex Market , Hedging Strategies