Foreign exchange swap
An agreement to exchange stipulated amounts of one
currency for another currency at one or more future dates.
foreign exchange swap
Simultaneous spot and forward transactions exchanging one currency against another. The Eurosystem can execute open market monetary policy operations in the form of foreign exchange swaps, where the national central banks (or the ECB) buy or sell euro spot against a foreign currency and at the same time sell or buy them back in a forward transaction.
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European Central Bank, Frankfurt am Main, Germany. This information may be obtained free of charge through the
ECB's website.
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