1. Unilateral principal exchange: In unilateral principal exchange, both parties only exchange the principal of one of them. One party pays the principal to the other party and settles the interest at the agreed interest rate on the agreed date in the future. This form is suitable for cases where only one party has actual capital demand or the availability of funds is good.
2. Bilateral principal exchange: In bilateral principal exchange, both parties exchange each other's principal. Both parties pay a certain amount of principal to each other and settle interest at the agreed interest rate. This form is suitable for both parties who need funds or want to get preferential interest rates from each other.
Currency swap business is a financial derivative product, which is used to manage currency exchange rate risk and interest rate risk. Through currency swap, both parties can exchange a certain amount of currency on the agreed future date and settle interest at the agreed interest rate.