an agreement to exchange two currencies is called a(n)
Currency swap [1][2]A cross-currency swap's (XCS's) effective description is a derivative contract, agreed between two counterparties, which specifies the nature of an exchange of payments benchmarked against two interest rate indexes denominated in two different currencies. It also specifies an initial exchange of notional currency in each different currency and the terms of that repayment of notional currency over the life of the swap.
Czech Republic and the euro The Czech Republic, a member of the European Union (EU), uses the Czech koruna as its currency, regulated by the Czech National Bank, a member of the European System of Central Banks, and does not participate in European Exchange Rate Mechanism II (ERM II). It is bound by its 2003 Treaty of Accession to the EU to adopt the euro and join the eurozone once it has satisfied the euro convergence criteria.