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Is foreign exchange forward mainly used to manage interest rate risk between currencies?
Foreign exchange forward is mainly used to manage interest rate risk between currencies. The foreign currency forward interest rate agreement has a simple transaction structure and is mainly used to manage interest rate risks between currencies. Customers can convert floating interest rates into fixed interest rates through this product, and vice versa. By matching the interest standards of the asset side and the liability side, the market risk of short-term interest rate fluctuation is avoided.