Currency Swap

There are two related instruments:

• FX swap: a spot purchase combined with a forward sale (or vice versa) of the same currency amount. It is used by banks to manage short-term liquidity in different currencies; for example, a bank short of rupees but long in dollars can swap dollars for rupees now and reverse later.
• Cross-currency swap: a longer-term contract in which parties exchange principal at the start and end, and exchange interest payments in the two currencies during the life of the swap. It is used to convert a loan in one currency into another and hedge currency risk.

Central banks use currency swap lines with one another to provide foreign currency liquidity during stress. Central banks also use FX swaps as a monetary instrument: buying foreign currency against domestic currency injects liquidity, and the reverse absorbs it.

In Nepal, NRB has used foreign exchange swaps and outright purchase or sale of foreign currency as part of its liquidity management, and banks can enter into swaps for hedging within NRB's foreign exchange directives.

दुई प्रकार:

• FX स्वाप: एउटै रकमको स्पट खरिद र फरवार्ड बिक्री (वा उल्टो)। बैंकले फरक मुद्राको अल्पकालीन तरलता व्यवस्थापन गर्न प्रयोग गर्छ।
• क्रस-करेन्सी स्वाप: सुरु र अन्त्यमा साँवा साटासाट र अवधिभर दुई मुद्रामा ब्याज साटासाट गर्ने दीर्घकालीन सम्झौता, जसले एक मुद्राको ऋणलाई अर्कोमा बदली जोखिम हेज गर्छ।

केन्द्रीय बैंकहरूले सङ्कटमा विदेशी मुद्रा तरलताका लागि आपसमा स्वाप लाइन राख्छन्। केन्द्रीय बैंकले स्वदेशी मुद्राविरुद्ध विदेशी मुद्रा किन्दा तरलता प्रवाह र बेच्दा प्रशोचन हुन्छ। नेपाल राष्ट्र बैंकले तरलता व्यवस्थापनमा विदेशी विनिमय स्वाप र विदेशी मुद्रा खरिद/बिक्री प्रयोग गरेको छ।