In an FX swap, one currency is swapped for another on one date and then swapped back on a future date.

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An FX swap, also known as a foreign exchange swap, involves exchanging one currency for another on one day and then exchange them back on a future date, creating a contractual agreement between parties to exchange one currency for another currency at a pre-agreed exchange rate, usually at a fixed exchange rate.

In an FX Swap, One Currency Is Swapped for Another