Legal Definition of Foreign Exchange Swap

What is Legal Definition of Foreign Exchange Swap?

Legal Definition of Foreign Exchange Swap meaning (25) Foreign exchange swap The term “foreign exchange swap” means a transaction that solely involves— (A)an exchange of 2 different currencies on a specific date at a fixed rate that is agreed upon on the inception of the contract covering the exchange; and (B)a reverse exchange of the 2 currencies described in subparagraph (A) at a later date and at a fixed rate that is agreed upon on the inception of the contract covering the exchange.

 

reference: U.S. COMMODITY FUTURES TRADING COMMISSION – CFTC Glossary

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