Definitions for "currency swap"
An arrangement in which two parties exchange specific amounts of different currencies...
see also Interest Rate Swap) An exchange of interest rate payments in different currencies on a pre-set notional amount and in reference to pre-determined interest rate indices in which the notional amounts are exchanged at inception of the contract and then re-exchanged at the termination of the contract at pre-set exchange rates. Delta The sensitivity of the change in the financial instrument's price to changes in the price of the underlying cash index.
Usually associated with speculative trading and high trading volumes. A swap that involves the exchange of principal and interest in one currency for the same in another currency. Currency Swaps were originally used to circumvent currency controls.