Cross-Currency Interest Rate Swaps

CNS Treasury’s Cross-Currency Interest Rate Swaps provide an integrated solution to manage both currency and interest rate risk in one transaction. Lifecycle, MTM tracking and compliance support simplify reporting and ensure IFRS9 alignment.

Cross-Currency Interest Rate Swaps

CNS Treasury’s Cross-Currency Interest Rate Swaps functionality provides a robust solution for managing both currency and interest rate risk in a single transaction. In a cross-currency interest rate swap, two parties exchange both principal and interest payments in different currencies, with one side typically paying a fixed or floating rate in their home currency and receiving payments in the foreign currency. This type of swap is especially useful for multinational organisations with financing needs in various currencies, as it allows them to hedge against currency fluctuations and interest rate changes simultaneously.

Key Features and Benefits

CNS Treasury supports automated tracking and reporting for cross-currency interest rate swaps, enabling real-time visibility into cash flow obligations and risk exposure across currencies. By centralising swap data, treasury teams gain accurate insights into both sides of the transaction, including exchange rates, payment schedules, and currency exposure. This functionality not only streamlines management but also allows for comprehensive analysis and reporting, helping organisations make informed decisions and manage risk effectively.

Compliance and Hedge Accounting

With integrated hedge accounting support, CNS Treasury ensures that cross-currency interest rate swaps comply with IFRS9 standards and other regulatory requirements. The platform supports key accounting processes, including journal entry generation and effectiveness testing, reducing the administrative burden on treasury teams. This integration ensures that treasury departments can manage complex cross-currency swaps confidently, with all compliance and reporting requirements easily met.

CNS Treasury’s Cross-Currency Interest Rate Swaps functionality offers a powerful tool for managing both currency and interest rate risk, with comprehensive reporting, visibility, and full compliance support.

For assistance or to book a meeting, contact our support team at support@cnstreasury.com.

Thanks,

The CNS Team