In executing a foreign currency swap, normally an intermediary would be involved like banks, and investment houses. This is due mainly to the complexity of the transaction and the amount involved. These kinds of contracts normally costs a material amount so the parties would only use these kinds of facilities when planning for their long term cash flow needs, and to hedge against future inflation. If a company or individual feels the need to enter into a foreign currency swap transaction, the first thing to do is either look for another party who has the same need, with the opposing currency involved. Or, take on an intermediary who would look for the proper counterparty for the transaction. After which, both parties would have to agree on the rate to be used for their future transactions. These transactions can range from a year to even ten years into the future, depending on their requirements.

After the papers are signed, both parties would just need to wait for the time that the contract would be enforceable. At that time, without demand, both parties would then honor what is stipulated in the contract and consummate the agreement. There are a lot of ways in which to use foreign currency swaps and there can be complexities as well, but even so, this facility is still found to be very helpful in ensuring that companies and individuals alike would be able to facilitate trade more by using foreign currency swaps and other such vehicles. It just needs proper research, identification of future needs, and thorough analysis of all the factors involved that may affect the different rates that are being considered when entering into a foreign currency swap.