URFIN-AI Currency Swap Case Study

Sweden-India Repo Transaction Partnership

Swap Volume: 100 Million SEK ≈ 797.5 Million INR

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Swap Transaction Overview

Parameter Sweden (Holding INR) India (Holding SEK)
Initial Position 797.5 Million INR 100 Million SEK
Local Rate 5.50% (RBI Rate) 2.00% (Riksbank Rate)
Daily Interest Earned 120,171.23 INR 5,479.45 SEK
Platform Fee (0.5%) 10,925.34 INR 1,369.86 SEK

Swedish Institution Benefits

  • Earns 5.50% on INR holdings vs 2.00% domestic rate
  • Monthly Interest: 3.61 Million INR
  • No FX conversion costs
  • Maintains INR liquidity for Indian operations
  • Additional yield: 3.50% (Difference between rates)
Net Annual Benefit: 39.88 Million INR

Indian Institution Benefits

  • Stable SEK funding at 2.00%
  • Monthly Interest: 164,384 SEK
  • Lower borrowing cost vs domestic rate
  • SEK liquidity for Swedish operations
  • Cost saving: 3.50% (Difference between rates)
Net Annual Cost Saving: 3.50 Million SEK

Liquidity Benefits

  • Eliminates cross-border currency conversion costs
  • Reduces settlement risk through simultaneous exchange
  • Provides natural hedge against currency fluctuations
  • Improves balance sheet efficiency
  • Creates stable funding sources in both currencies
Total Transaction Cost Saving: Up to 2% vs Traditional FX

Annual Impact Analysis

Based on 252 trading days:

  • Total Swap Volume: 100 Million SEK ↔ 797.5 Million INR
  • Combined Interest Earned: 30.28 Million INR + 1.38 Million SEK
  • Platform Revenue: 2.75 Million INR + 0.35 Million SEK
  • FX Cost Savings: ~15.95 Million INR (2% of notional)
Total Economic Value: 49.01 Million INR + 1.73 Million SEK