Swap

Summary of Swap

By agreement, the combined purchase and sale of a specified amount of foreign exchange, with different dates for sale and purchase. This arrangement permits each party to the transaction to use, for a given period of time, a currency he needs in return for one he does not need, without any exchange risk.

(Main Author: William J. Miller)

Swap in International Trade

Meaning of Swap, according to the Dictionary of International Trade (Global Negotiator): In international trade, the trading of almost identical products (such as oil) from different locations to save transportation costs. See countertrade.