Currency Swap
Also called: cross-currency swap, FX swap, basis swap
A currency swap exchanges principal and interest payments in one currency for those in another, and unlike a rate swap the principal genuinely is exchanged. Corporates use it to borrow where they have the best access and end up with the currency they actually need. The cross-currency basis — the deviation from theoretical parity — is a closely watched gauge of dollar funding stress in the global banking system.
Where this is taught
Definitions are the trailer. These free levels turn Currency Swap into something you play — one bite-size lesson, with worked examples, a quiz and XP.