The main functions of financial swaps are:

(1) can arbitrage between global markets through financial swaps, thus reducing the financing cost of fundraisers or improving the return on assets of investors on the one hand, and promoting the integration of global financial markets on the other.

② Using financial swaps, we can manage interest rate risk and exchange rate risk in asset-liability portfolio.

③ Financial swap is an off-balance sheet business, which can avoid foreign exchange control, interest rate control and tax restrictions.