A transaction for customers to avoid interest rate risks. The customers agree with the Bank to exchange their liabilities (or other transactions) with fixed interest rates into floating interest rates, or vice versa, based on a given notional amount, within a specific period to avoid the risk of rising or falling interest rates.
A transaction for customers to avoid exchange rate and interest rate risks. The customers agree with the Bank to exchange their liabilities (or other transactions) bearing interest at a fixed (or floating) interest rate in a specific currency into another currency bearing interest at a floating (or fixed) interest rate, based on a given notional amount, within a specific period to avoid the risk of rising/ falling interest rates in different currencies.
