FX swap

Change the maturity date of a forward with an FX swap

An FX swap is a good instrument if you wish to move the maturity date of an FX forward to an earlier or later date. An FX swap includes two FX trades, one selling and the other buying the same currency. Usually one of the FX trades is made on the maturity date of the original forward and the other on the date which you want to have as the new maturity date.

How does your company benefit from FX swap?

• A swap can move the maturity date of a forward to a later date if a foreign currency payment comes later than expected.
• A swap can move the maturity date of a forward to an earlier date if a foreign currency payment comes sooner than expected.