Emerging Market dollar debt, FX swaps and exchange rate risks
However, the global bank presumably derives "utility" from dollar assets and hence will need to convert the EM currency proceeds that she receives from the FX swap into dollars using the future spot rate.


The bank already had the EM currency though, right? If they had invested it in the EM stock market or any other way they would have had to do switch the returns to dollars anyway, so this is not caused by FX swap.

If the bank did not have the EM currency before entering into the FX swap then it is buying the EM currency when the goal is actually future dollars that creates the exchange rate risk, not FX swap itself.