Currency Swap

Business / Taxes / Currency Swap: In a currency swap, the parties to the contract exchange the principal of two different currencies immediately, so that each party has the use of the different currency. They also make interest payments to each other on the principal during the contract term. In many cases, one of the parties pays a fixed interest rate and the other pays a floating interest rate, but both could pay fixed or floating rates. When the contract ends, the parties re-exchange the principal amount of the swap. Originally, currency swaps were used to give each party access to enough foreign currency to make purchases in foreign markets. Increasingly, parties arrange currency swaps as a way to enter new capital markets or to provide predictable revenue streams in another currency.

Swap

Business / Finance / Swap: Maximum rate of growth a firm can sustain without increasing financial leverage. MORE

Moscow Interbank Currency Exchange (MICEX)

Business / Finance / Moscow Interbank Currency Exchange (MICEX): Established in 1992, the most liquid and best organized financial exchange in Russia. MORE

Liability Swap

Business / Finance / Liability Swap: An interest rate swap used to alter the cash flow characteristics of an institution's liabilities so as to provide a better match with its assets. MORE

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