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PLEASE NOTE: THE QUESTION HAS BEEN POSTED BEFORE. I WOULD LIKE A FRESH TAKE ON IT...

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Finance

PLEASE NOTE: THE QUESTION HAS BEEN POSTED BEFORE. I WOULD LIKE AFRESH TAKE ON IT AS THE PREVIOUS ANSWER WAS NOT CLEAR ENOUGH. HEREIS THE QUESTION:

Give an example to explain why a US company might wish to enterinto a fixed rate currency swap, paying Euros and receiving fixed-rate Sterling.

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4.4 Ratings (717 Votes)
One scenario which I can think of Imagine a US automobile which has operations in three countries US revenues in USD UK revenues in GBP and Germany revenues in EUR Revenue Split is 40 from the US 30 from Germany and 30 from UK The company has two    See Answer
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