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Quick question on cross currency swaps. On expiry, principal payments are exchanged again. What happens when on expiry, the exchange rate is not the same as when the swap was first entered into?

The principal amount exchanged at the end is still the same as the initial principal amount exchanged? or must I recalculate the amount based on the updated exchange rate?

Sorry for this basic question!

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    $\begingroup$ In cross currency swap, yes, the amount exchanged at maturity is the same as at the beginning. $\endgroup$ – will Apr 16 '17 at 16:52
  • $\begingroup$ Are you looking for an academic answer or the real world answer? $\endgroup$ – amdopt Apr 16 '17 at 17:39
  • $\begingroup$ For ordinary CCS the amounts exchanged at maturity are the same as at the beginning. This is the most common. There is a special type the MtMCCS where the amounts are periodically (e.g. yearly) reset based on current exchange rates. $\endgroup$ – Alex C Apr 17 '17 at 2:26
  • $\begingroup$ Thank you for the answers! you guys just helped out for an upcoming exam! $\endgroup$ – MH.Q Apr 17 '17 at 9:52

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