A contract to sell or buy a currency against another foreign currency at an exchange rate and a predetermined amount at the time of the transaction, while the exchange of funds is carried out within the next 2 working days after the transaction date.
At the time of maturity, it is an obligation for the party making the transaction to exchange the funds.
Interest Rate Swap (Fixed Pay)
Initially, customers have loans with floating interest rates on an SBI basis.
Customers have the view that interest rates tend to rise in the future.
By conducting an IRS (paying fixed and receiving floating), the customer has protected against future interest rate increases.
Interest Rate Swap (Floating)
Initially, customers have loans with fixed interest rates.
Customers have the view that interest rates tend to fall in the future.
By carrying out an IRS (paying for floating and receiving fixed), the customer has protected against a decline in interest rates in the future.