Foreign exchange swap (FX Swap) is an agreement between the bank and customer on simultaneous purchase and sale of foreign currency with two different value dates (spot and forward dates) for the same notional amounts, at pre-agreed exchange rates (Spot rate and Forward rate). Execution of FX Swap transaction at the pre-agreed terms is obligatory.
Who may use FX Swaps?
  • Companies who keep their funds in one currency and may have temporary demand for another currency for a specific period, although want to get back their proceeds in the initial currency after this period passes.
  • Companies who want to lock-in the exchange rate for the specific period to mitigate any currency risk exposure
FX Swap consists of 2 sides (or legs) - spot leg and forward leg. Similarly there are 2 exchange rates prevailing in the FX Swap transaction - "Spot" exchange rate and "forward" exchange rate.
Difference between the "spot" and "forward" rates is maximum amount client pays in order to eliminate any exchange rate risk.

Contact Information

TBC Bank Treasury

Tel: +322 2 27 27 28
+332 2 27 27 25
+332 2 27 27 27 (*1108, *1105,*1173)

Dealing Code: TBCG