What does it mean if you “buy and sell GBP 5 million against USD in a 1-month (30 days) FX swap”?
It means you buy GBP now, and in a month sell it back with interest, and get back USD.
Note you must arrange to sell back more than 5mil GBP, otherwise, you end up with some amount of interest in a foreign currency, with an unknown market value when reporting in home currency. This is commonly seen as a FX risk.
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