Further provisions for foreign exchange swaps will be specified in a standardised Master Foreign Exchange Swap Agreement. As a rule, the ESCB will operate only in widely traded currencies and in accordance with standard market practices. The swap points are the difference between the exchange rate of the forward transaction and the exchange rate of the spot transaction. The ESCB may offer counterparties the opportunity of placing remunerated fixed-term deposits with the national central bank in the country where the counterparty is located. The collection of fixed-term deposits takes the form of uncollateralised lending by the counterparties to the NCBs for a fixed term and with a fixed rate of interest.
Interest is paid at the end of the maturity of the deposit.
Note that for accounting and statistical purposes the assets remain on the balance sheet of the institution repoing the security in question.