Currency swap Subject: Economy Section: External Sector A currency swap between two countries is an agreement or contract to exchange currencies (of the two countries or any hard currency) with predetermined terms and conditions. Often the popular form of currency swap is between two central banks. The main purpose of currency swaps is to avoid turbulence and […]

    CURRENCY SWAP Subject: Economics Context: The Central Bank of Sri Lanka (CBSL) settled a $400 million currency swap facility from the Reserve Bank (RBI) of India last week, meeting the terms that the two countries had agreed upon. Concept: A currency swap is a transaction in which two parties exchange an equivalent amount […]