Shafiq K. Ebrahim - Latest - Bank of Canada
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Bank of Canada RSS Feedsen2024-03-29T00:49:26+00:00The Federal Government's Use of Interest Rate Swaps and Currency Swaps
https://www.bankofcanada.ca/wp-content/uploads/2010/06/kiffe.pdf
Interest rate swaps and currency swaps are contracts in which counterparties agree to exchange cash flows according to a pre-arranged formula over a period of time. Since 1985, the federal government has been using such swaps to manage its liabilities in a cost-effective and flexible manner.
The authors outline the characteristics of swap agreements and the ways in which the government uses them. They show that the swap program has been cost-effective, estimating that past and projected savings exceed $500 million. The authors also discuss the methods that the government uses to monitor the counterparty credit risk associated with these transactions.2000-12-15T09:23:56+00:00enThe Federal Government's Use of Interest Rate Swaps and Currency Swaps2000-12-15