Currency and Interest Rate Swap in hedging

Abstract

This article is dedicated to a currencyand interest rate swap (CIRS). The transaction is not common on the Polish market. However, it is worth attention as it is a perfect solution for enterprises to build a sound structure of a cash flow. The article presents main areas of the application of CIRS; the reduction of the financial charge to an enterprise thanks to the exchange of the currency of a credit and the reduced currency risk. The article also describes CIRS market in Poland and presents the best known examples of the use of the swap by Polish enterprises.