Chemistry, asked by Anonymous, 8 months ago

What is a currency swap? How does currency swap reduces exposure to Risk ? Give an example.​

Answers

Answered by s02371joshuaprince47
0

Answer:

A currency swap is a foreign exchange transaction that involves trading principal and interest in one currency for the same in another currency.

Hedging example one

If the companies have already borrowed in the currencies each needs the principal in, then exposure is reduced by swapping cash flows only, so that each company's finance cost is in that company's domestic currency.

mark me as brainliest.....

Similar questions