Interest rate swap, you can understand that each party's principal is 50 yuan. At maturity, Bank A has to pay as much interest as Bank B, but because of the swap, Bank A has to pay as much interest as Bank B, and Bank B has to pay as much interest as A. ..

Because the interest rate of Bank A is fixed, the value of A is constant, and the interest rate of Bank B is floating, so the value of B is variable and determined according to the market interest rate at that time, so Bank A has realized that the interest it pays avoids the interest rate risk, because when the interest rate falls, he pays less (B) than he should have paid (A).

I don't know about China's swap transactions, but they are popular in Europe and America, and are generally conducted at libor interest rate.