Cross Currency Swap (CCS)

Cross Currency Swap (CCS) is an agreement between two parties to exchange interest payments and principals denominated in two different currencies. Customers can fully hedge their interest rate and exchange rate risk by entering into CCS. Normally, CCS has an initial and final exchange of notional amount although the initial exchange can be omitted subject to agreement by both parties. The exchange of notional is made at a pre-agreed exchange rate, which eliminates the uncertainty related to foreign exchange movement.