Swaps are derivatives that are used for swapping cash flow streams and are used in most instances for hedging purposes. The article takes a closer look at two types of swaps that are used for swapping foreign currency through minimizing foreign exchange rate risk. Currency swaps and FX swaps are similar to one another, and are, therefore, easily confused to be the same. The article offers clear examples and explanations of each and highlights how they are similar and different to each other.
掉期是用于 swapping cash flow streams的衍生品，在大多数情况下用于对冲目的。这篇文章详细介绍了两种通过最大限度地降低外汇汇率风险来 swapping foreign currency的掉期。货币掉期和外汇掉期彼此相似，因此很容易被混淆为相同。这篇文章提供了每种方法的明确例子和解释，并强调了它们之间的相似之处和不同之处。
What is Currency Swap?
A currency swap is an agreement between two parties to exchange specific amounts of different currencies. A typical currency swap constitutes a foreign exchange agreement where two parties will exchange or ‘swap’ a series of payments in one currency for a series of payments in another currency. The payments that are exchanged are interest and principal payments of a loan denominated in one currency for a loan of an equal amount of another currency.
货币互换是双方之间交换特定数量不同货币的协议。典型的货币互换构成了一种外汇协议，双方将用一种货币的一系列付款交换或“互换”另一种货币。交换的付款是以一种货币计价的贷款的利息和本金支付，而另一种货币的贷款金额相等。
As an example, a US based firm needs British Pounds and a company based in the UK requires US dollars. In this situation, the US firm will borrow pounds, and the UK firm will borrow dollars; the US firm will pay for the UK firm’s debt that is in USD (Principal and interest payments made in USD) and UK firm will pay for US firm’s debt that is in pounds (principal and interest payments made in pounds). In order for such an exchange to take place successfully, an interest rate (fixed or floating), agreed upon the amount of borrowing, and a maturity date must be set. Currency swaps present a competitive advantage to the parties involved as these parties can now borrow foreign currency at a lower cost with less exposure to foreign exchange rate risk.
例如，一家美国公司需要英镑，一家英国公司需要美元。在这种情况下，美国公司将借入英镑，英国公司将借入美元；美国公司将以美元支付英国公司的债务（以美元支付的本金和利息），英国公司将以英镑支付美国公司的债务。为了成功地进行这种交换，必须设定一个利率（固定或浮动）、商定的借款金额和到期日。货币互换为相关方提供了竞争优势，因为这些方现在可以以更低的成本借入外币，同时减少了外汇风险。
What is FX Swap?
FX swap is a contract between two parties that simultaneously agrees to buy (or sell) a specific amount of a currency at an agreed on rate, and to sell (or buy) the same amount of currency at a later date at an agreed on rate. There are 2 legs in a FX swap transaction. In the first leg of the swap, a specific amount of a currency is bought (or sold) against another currency at the prevailing spot rate. In the second leg of the transaction, an equal amount of currency is sold (or bought) against the other currency at the forward rate.
外汇掉期是双方之间的一种合同，双方同时同意以商定的利率购买（或出售）特定数量的货币，并在以后以商定的汇率出售（或购买）相同数量的货币。外汇掉期交易有两个分支。在掉期的第一阶段，以现行即期汇率对另一种货币买入（或卖出）特定数量的货币。在交易的第二阶段，以远期汇率对另一种货币出售（或购买）等量的货币。
Taking a simple example, a company has 500,000 Euros and requires USD in 5 months’ time. Since the company already has funds in another currency (euros), they can use these funds to fulfill their requirement without being exposed to foreign exchange rate risk. The company can sell the 500,000 Euros to the bank at the current spot rate, and receive an equivalent of USD, and will agree to buy back the Euros and sell USD in 5 months.
举个简单的例子，一家公司有50万欧元，5个月后需要美元。由于该公司已经拥有另一种货币（欧元）的资金，他们可以使用这些资金来满足他们的要求，而不会面临外汇汇率风险。该公司可以按当前即期汇率将50万欧元出售给银行，并获得等值的美元，并同意在5个月内回购欧元并出售美元。
Currency Swap vs FX Swap
Currency swaps and foreign exchange swaps are very similar to one another as they aid in hedging foreign exchange risk and offer corporations a mechanism in which foreign exchange can be obtained with minimal exposure to exchange rate risk. Nevertheless, these two derivatives are different to one another in that a currency swap exchanges a series of cash flows (interest payments and principles), whereas in a FX swap involves 2 transactions; sell or purchase at the spot rate, and repurchase or resell at forward rate.
货币掉期和外汇掉期彼此非常相似，因为它们有助于对冲外汇风险，并为企业提供了一种机制，在这种机制中，可以在最低限度地暴露于汇率风险的情况下获得外汇。然而，这两种衍生品的不同之处在于，货币掉期交换一系列现金流（利息支付和原则），而外汇掉期涉及2笔交易；以即期汇率出售或购买，以及以远期汇率回购或转售。
The other major difference is that a currency swap is a loan that is taken out by either party where interest and principal payments are then exchanged, whereas a FX swap is conducted by using an available amount of currency that is then exchanged for an equivalent amount of another currency.
另一个主要区别是，货币掉期是一种由任何一方获得的贷款，然后交换利息和本金，而外汇掉期是通过使用可用的货币量进行的，然后将其兑换成等值的另一种货币。
Summary:
Difference Between Currency Swap and FX Swap
• A typical currency swap constitutes a foreign exchange agreement where two parties will exchange or ‘swap’ a series of payments (interest and principal) in one currency for a series of payments in another currency.
•典型的货币互换构成了一种外汇协议，双方将用一种货币的一系列付款（利息和本金）交换或“互换”另一种货币。
• FX swap is a contract between two parties that simultaneously agrees to buy (or sell) a specific amount of a currency at an agreed on rate, and to sell (or buy) the same amount of currency at a later date at an agreed on rate.
•外汇掉期是双方之间的一种合同，双方同时同意以商定的利率购买（或出售）特定数量的货币，并在以后以商定的汇率出售（或购买）相同数量的货币。【比如上面例子中的某公司和银行】
• Currency swaps and foreign exchange swaps are very similar to one another as they aid in hedging foreign exchange risk and offer corporations a mechanism in which foreign exchange can be obtained with minimal exposure to exchange rate risk.
•货币掉期和外汇掉期彼此非常相似，因为它们有助于对冲外汇风险，并为企业提供了一种机制，在这种机制中，可以在最低限度地降低汇率风险的情况下获得外汇。
