Export enterprises received $5 million in export payment from foreign importers. Therefore, the enterprise needs to convert the payment into RMB for domestic expenditure, but at the same time, the enterprise needs to import raw materials and will pay the payment of 5 million US dollars within three months.

At this time, the enterprise can handle a RMB and foreign currency swap business with the bank for three months: sell $5 million immediately to get the corresponding RMB, and buy $5 million three months later. Through the above transactions, enterprises can bridge the capital gap and avoid risks.

Foreign exchange swap is a kind of financial swap products. Financial swap, also known as financial swap, refers to the exchange of a group of funds between two parties within a certain period of time according to the pre-agreed exchange rate, interest rate and other conditions to avoid risks.

Swap business combines hedging operations in foreign exchange market, money market and capital market, providing a powerful tool to avoid medium and long-term exchange rate and interest rate risks. As an efficient risk management method, swap can be an asset or a liability. It can be principal or interest.

Extended data

Swap foreign exchange transactions obviously have the following characteristics:

1, a currency is bought and sold at the same time, or vice versa;

2. The currency and amount of buying and selling are consistent;

3. The delivery time of buying and selling is different. Because of this, swap foreign exchange transactions will not change the foreign exchange holdings of traders, but will only change the term structure of foreign exchange holdings of traders, hence the name "swap".

Swap transactions only do one transaction, not two, and the transaction cost is low.

Baidu encyclopedia-swap foreign exchange transactions