The Relationship between Currency Swap and Foreign Exchange Reserve
Foreign exchange reserve is the most direct embodiment of currency swap. Currency swap refers to the direct exchange between two currencies after the exchange rate, quota and term are agreed by two countries or regions, without the need for a third-party currency for liquidation. The most direct manifestation of currency swap is that the foreign exchange reserves of the other country's currency will increase. Currency swap refers to the swap between two debt funds with the same amount, the same term but different currencies.