Why treating them as substitutes quietly breaks long-dated hedging frameworks
Long-dated FX hedging is often treated as a simple extension of short-dated practice. FX swaps and cross-currency swaps are routinely grouped together, chosen on familiarity or price, and assumed to be interchangeable.
They aren’t.
This CIO brief explains why FX swaps and cross-currency swaps sit in different markets, solve different problems, and fail in different ways once hedge horizons extend beyond one or two years.
It outlines where rolling FX swaps work, where they introduce hidden rollover and liquidity risk, and when cross-currency swaps become the more appropriate balance-sheet tool.
The focus is not on theory or product selection, but on structure: how hedge intent, asset duration, liquidity, and governance interact over time.
Read the CIO brief
FX Swaps vs Cross-Currency Swaps – Why Structure Matters