In interest rate swap transactions, the principal usually does not need to be exchanged. Interest rate swap is essentially an exchange agreement between fixed interest rate and floating interest rate. The two parties exchange the cash flow generated by fixed interest rate and floating interest rate according to the agreed period and amount. For example, an enterprise may need long-term funds, so it chooses to convert floating interest rate debt into fixed interest rate in the next few years to avoid the risk of future interest rate fluctuations; Another company may need short-term funds, so it chooses to convert its fixed-rate debt into floating interest rate in the next few years to better match its own capital needs.

Therefore, in interest rate swap transactions, there is usually no need to exchange the principal, and both parties only need to exchange the corresponding interest cash flow according to the agreed proportion. However, some structured interest rate swap transactions may involve principal swap, such as amortization nominal swap and other structures, which usually need to be negotiated and agreed according to specific circumstances.