In a more specific and relevant context, central banks sometimes establish swap lines with each other. These lines allow them to provide liquidity in their own currency to foreign central banks. For example, the European Central Bank (ECB) has swap lines with non-eurozone central banks to ensure that eurozone banks can obtain foreign currencies easily.
| Feature | Detail | |---------|--------| | | Czech Koruna (CZK) | | Floating Index | 3M or 6M PRIBOR (soon transitioning to €STR + spread due to CZK’s ERM-II linkage, but PRIBOR remains common) | | Tenors | 1 to 15 years (liquidity highest up to 10 years) | | Day Count Convention | Act/360 (fixed), Act/360 (floating) | | Payment Frequency | Usually semi-annual or quarterly, matching floating reset dates | | Market | OTC, primarily traded between banks, corporates, and asset managers in Prague | cezch swap