Definition: Foreign exchange swap
ECB terminology
Simultaneous spot and forward transactions exchanging one currency against another. The Eurosystem can execute open market monetary policy operations in the form of foreign exchange swaps, where the national central banks (or the European Central Bank) buy or sell euro spot against a foreign currency and at the same time sell or buy them back in a forward transaction. http://www.ecb.europa.eu/home/glossary/html/glossa.en.html
Source:
European Central Bank on-line glossary (2009)
European Central Bank on-line glossary (2009)
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