Meaning of “currency swap” in the English Dictionary

business-english dictionary

"currency swap" in Business English

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currency swapnoun [ C ]

uk us

BANKING, FINANCE an agreement between two organizations to change the amount of money lent or the interest payments of a loan made in one currency for the same part of a loan in another currency:

When they borrowed dollars from the bank, they entered into a currency swap to protect the value of their loan for projects that had to be paid in pesos.

(Definition of “currency swap” from the Cambridge Business English Dictionary © Cambridge University Press)