currency swap difficult

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  • 7/25/2019 Currency Swap Difficult

    1/3

    Singapore Bank Philippine Bank

    SS 5.0% 10.2%

    PP 5.5% 10.0%

    SS borrowed 1 million sgd from Singapore bank, paying 5.0% interest

    PP borrowed 32 million php from Philippine bank, paying 10.0% interest

    S!P "#"$"!$"# 1 S&' ( 32 Php

    SS gi)es 1 million sgd to PP, interest at 5.5%

    PP gi)es 32 million php to SS, interest at 10.2%

    SS pays 1 million sgd * 5.0% +50,000 sgd to Singapore bank

    PP pays 32 million php * 10% +3,200,000 php to Philippine bank.

    S!P "#$--S$ P!/-#$S 1 S&' ( 25 Php

    SS pays to S& Bank 1 million S&' * 5% 50,000.00SS reei)es from PP 1 million S&' * 5.5% 55,000.00

    #et &ain+oss 5,000.00

    PP pays 32 million P4P * 10% 3,200,000.00

    PP reei)es 1 million S&' * 25 P4PS&' * 10.2% 2,550,000.00

    #et &ain+oss +50,000.00

    S!P $-"#!$"#

    SS gi)es 33m php to PP, howe)er, SS only reei)ed 32m php from PP d6ring swap initiati

    PP gi)es 1m sgd to SS, PP reei)ed 1m sgd from SS d6ring swap initiation

    SS reei)es and ret6rns 1m sgd from sg bank. he reei)es 1m sgd from PP at terminatio

    SS reei)es 32m php from PP at initiation date, b6t he ret6rns 33m to PP at termination d

    PP reei)es and ret6rns 32m php from ph bank, b6t reei)es 33m php from SS at termina

    PP reei)es 1m sgd from SS at initiation date, and he repays 1m sgd to SS at termination

    SS gi)es 1 million sgd to Singapore bank

    PP gi)es 32 million php to Philippine bank

    -nd res6lt8 SS gains 5000 sgd b6t loses 1 million php

    PP gains 350,000 php

  • 7/25/2019 Currency Swap Difficult

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    S&'

    P4P

    n

    date, so from this transation, there7s no gainloss

    ate, so he loses 1 million php from this transation

    tion date, so from this transation, he gains 1m php

    date, so there7s no gainloss from this transation

  • 7/25/2019 Currency Swap Difficult

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    1 9S' ( 0.: -9 #otional !mo6nt 1,000,000 9S'

    1 9S' ( 1.0 -9

    9S gi)es 1,000,000 9S' to -9

    -9 gi)es :00,000 -9 to 9S