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{{a|isda|}} | {{a|isda|}}Swaps originated in the UK in the late 1970s, days, when men were men and governments were suspicious of foreign speculators fannying around in their currencies<ref>A suspicion they would have done well to take more notice of in the 1980s, as it happens — isn’t that right, Mr Lawson?</ref>. Despite running a [[Noel Edmonds’ Multi-Coloured Swap Shop|swap shop]], Noel Edmonds was not involved. [[HMRC]], for example, would [[tax]] [[foreign exchange]] transactions into and out of [[British pound|sterling]], constraining capital flight, it was thought, and increasing domestic investment. | ||
Still, there was a whole world out there waiting for British money to chase it. So, those financial wizards in the city had an idea. How about, simultaneously, ''I'' lend ''you'' a million pounds, at [[Fixed rate|fixed]] sterling interest, and ''you'' lend ''me'' a million and a half dollars (being the equivalent value in USD), at [[Fixed rate|fixed]] ''dollar'' interest, each of us to then pay interest payments in the currency of our respective loans and repay the other on the same day in 5 years’ time? | Still, there was a whole world out there waiting for British money to chase it. So, those financial wizards in the city had an idea. How about, simultaneously, ''I'' lend ''you'' a million pounds, at [[Fixed rate|fixed]] sterling interest, and ''you'' lend ''me'' a million and a half dollars (being the equivalent value in USD), at [[Fixed rate|fixed]] ''dollar'' interest, each of us to then pay interest payments in the currency of our respective loans and repay the other on the same day in 5 years’ time? | ||