Cross Currency Swap contract
A cross currency swap allows two parties exchange loan principal and interest payments in different currencies. The cross currency swap rate refers to the rate at which the two parties exchange these payments, and it can be fixed or floating.
Flexibility
This kind of derivative allows for the exchange of two different currencies at a predetermined cross currency swap rate.
Stability
Cross currency swap pricing depends on several factors, including the current spot rate and any basis risk that may arise from the difference in fixing dates for interest payments.
Risk management
By setting both the fixed and floating legs of the swap at the same time, cross currency basis swaps enable companies to hedge against fluctuations.
Enter a swap contract today
By using cross currency swaps, companies can better predict their expected cash flows and protect themselves from unexpected losses due to changing exchange rates. Consult with a licensed Metrobank trader who can assess your specific needs and recommend the best solution for you.
Don't let exchange rate fluctuations harm your bottom line. Start exploring your cross currency swap options today and take control of your financial future.
