An interest rate swap in which both counterparties pay fixed rate in their respective currencies. It is a type of cross-currency swap that involves the exchange of fixed interest payments on both sides. The two parties may or may not exchange principals (swap principals) at the inception of the contract. In case the principals are exchanged, this swap would help transform a fixed-coupon bond denominated in one currency into another fixed-coupon bond denominated in another currency.

It is also known as a fixed-rate currency swap or a fixed-fixed currency swap.