currency swap - Investment & Finance Definition
A trade that shifts a loan from one currency to another or shifts the currency of an asset. Companies use a currency swap to borrow in a currency different from their own currency and to be protected from changes in exchange rates that would affect the value of the loan. A currency swap also is a way to diversify a company’s borrowing requirements to different capital markets or to shift cash flow from foreign currencies.Webster's New World Finance and Investment Dictionary Copyright © 2010 by Wiley Publishing, Inc., Indianapolis, Indiana.
Used by arrangement with John Wiley & Sons, Inc.