A currency swap is the exchange of currency between two parties. Interest payments are exchanged on fixed dates for the duration of the contract. It is considered a foreign exchange transaction and is not required by law to appear on the balance sheet of a company.
Originally, currency swaps were designed to circumvent exchange controls, ie government restrictions on buying and / or selling currency. Although countries with weak and / or developing economies typically use currency controls to limit speculation against their currencies, most developed economies have now eliminated controls.
What is MillTechFX?
We provide access to a transparent marketplace for comparative FX execution from up to 15+ counterparty banks, while harnessing a unique and significant pricing efficiency for our clients and reducing their operational burden. In addition, MillTechFX provides clients with full transparency of execution via independent TCA reporting.