What are the risks of currency swaps?
I'm interested in understanding the potential risks involved in currency swaps. Could you explain the various risks that one might encounter when engaging in such financial transactions?
Are currency swaps risky?
I'm curious to know, are currency swaps inherently risky investments? It seems that they involve exchanging one currency for another at a predetermined rate, but what are the potential drawbacks or hazards that investors should be aware of? Do these swaps often go wrong, or can they be a stable and profitable strategy when executed correctly? It would be helpful to understand the nature of the risks associated with currency swaps so that I can make an informed decision about whether or not to invest in them.