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Foreign exchange derivatives like FX swaps, forwards, and currency swaps involve exchanging the full principal amount at maturity, unlike other derivatives. Banks and financial firms use FX swaps to fund, hedge portfolios, and take positions. Most FX swaps involve the US Dollar, with short maturities, making them susceptible to Dollar funding squeezes during crises. Despite not being recorded on balance sheets, the scale of dollar payment obligations exceeds 80 trillion USD in mid-2022, mainly owed by non-US entities.