Forward and swap transaction
6 important questions on Forward and swap transaction
What is driving Foreign exchange prices:
- Interest rate differential
- Inflation differential
- GDP growth differerential
- Currency offer
What is the function of the foreign exchange market?
Contracting today for future purchase or sale of FX
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When it is not possible to obtain currencies offshore in the spot market to settle a forward position
From who's standpoint is an outright forward transaction an uncovered speculative position in a currency
What provides means for the bank to mitigate currency exposure in a forward trade
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