| Article ID: | iaor1997597 |
| Country: | India |
| Volume: | 21 |
| Issue: | 2 |
| Start Page Number: | 3 |
| End Page Number: | 14 |
| Publication Date: | Apr 1996 |
| Journal: | Vikalpa |
| Authors: | Sivakumar Sivaprakasam, Mathew Anita |
| Keywords: | financial |
A currency swap involves exchange of principal and interest payments in two different currencies between two parties. Swaps are off balance sheet transactions and have grown at a phenomenal rate. This article focuses on the development of the swap market, presents an overview of currency swaps, and analyses the participants. It also discusses the basic types of swaps, assesses the risks and regulatory means of minimizing the risks, focuses on the practical applications, and evaluates the relevance of swaps to India.